Exporters in dilemma due to increase in domestic market price of sugar

24-Jan-2025 03:38 PM

The sugar export dilemma highlights a complex scenario where domestic price increases are clashing with global market conditions.

After the government allowed 10 lakh tonnes of sugar exports, millers have raised their prices by Rs 300-350 per quintal, leaving exporters in a difficult position.

The rise in domestic sugar prices is partially driven by millers demanding a higher price from exporters, but with the global market price not aligning, this poses a challenge.

Exporters are concerned that the global price of sugar is declining due to the potential increase in exports from India.

To make the deal profitable, the global market price needs to be higher than Rs 4000-4200 per quintal, but the current scenario shows prices are lower.

It seems both millers and exporters are waiting for the right moment—when the global price increases due to factors like the end of Brazil's sugar season,

the upcoming Ramadan demand, and potential fluctuations in the global market. This period of waiting could set the stage for more strategic moves in the coming months.

Do you think this situation could lead to any long-term shifts in India’s sugar export strategy, especially with Brazil's season change and the upcoming Ramadan demand?