Many factories in UP have entered into export agreements on the assumption that they would receive the same quota as last year, traders said.
Barely a week after the Centre announced the sugar export subsidy policy for the ongoing season, millers from Uttar Pradesh (UP) have taken the lead by signing export contracts for over six lakh tonne of raw and white sugar. In contrast, mills from Maharashtra are yet to sign a single contract, senior industry officials said.
The Western India Sugar Mills Association (WISMA) has written to the Centre to issue the sugar export notification and mill-wise allocation of maximum admissible export quantity (MAEQ) at the earliest so that exports gather momentum and maximum quantity is exported before the arrival of Brazilian sugar in the market, BB Thombre, president, WISMA, said.
According to traders, the export contracts have been signed at Rs 2,400 to Rs 2,420 per quintal. Many factories in UP have entered into export agreements on the assumption that they would receive the same quota as last year, traders said. Of the allotted 60 lakh tonne of sugar, UP’s share normally comes up to 20 lakh tonne, while Maharashtra’s share comes up to 16 lakh tonne. Last season, Maharashtra’s export quota was around 16.80 lakh tonne.
Thombre said while the ex-mill rates are around Rs 2,700-Rs 2,800 per quintal, some brokers and traders were taking undue advantage and were purchasing sugar at Rs 2,500-Rs 2,600 per quintal. “This is happening despite prices remaining stable in the international market at $389-400 a tonne. Currently, raw sugar is quoted at 14.63 cents a pound in New York,” he said.
According to senior industry people, almost all mills in Solapur having resorted to underselling. Around 50% of the mills in Ahmednagar and Marathwada have been selling sugar below the government notified Rs 3,100 per quintal.
Source:-financialexpress.com