Bangladesh set to get benefit from Indian sugar export.

Like rice and wheat, Bangladesh is set to get another benefit from importing sugar from India, which will help offset largely the demand-supply gap in the local market. India has already agreed to allow Bangladesh to import rice and wheat from its market despite an existing ban on grain exports.

The decision is expected to help stabilize the price of the staple foodgrains especially when Russia banned export of wheat. Similarly, the imminent chance of importing sugar from India will simmer off the increased price of this essential item. According to media reports, the sugar producers there already sought export permission from the authorities to book benefit from supply shortfall on the global market that fuelled the price to a 21-year high in July.

Bloomberg last week reported a 25 percent rise in the sugar prices in July, the most since 1989. Aiming at the premium price, Indian Sugar Mills Association (ISMA) urged the authorities to issue permits to ship 967,000 metric tons before the start of the new season on October 1.

Indian sugar producers earlier told the media that they would have enough supplies to ship at least one million tons in the year beginning October. Food ministry official there also told media that sugar producers could be allowed white sugar export from December.

India, the second largest producer of sugar after Brazil, last exported sugar in the 2008-2009 season, but it imposed an export ban when drought hit hard sugar production.

Resumption in Indian exports after a two-year gap may help ease a global shortfall estimated at 8.5 million metric tons by the International Sugar Organization.

Bangladesh also depends almost entirely on sugar import to meet annual demand of around 14 lakh tons when local production is only 1.25 lakh tons.

The government recently fixed the retail price of sugar at Taka 47 a kilo for the month of Ramadan when demands go up by 30 percent over the normal requirement. The retail price, however, varied between Taka 50 and 54 per kilo as the authorities lack effective market supervision.

Source : nation.ittefaq.com