| Date: |
12-11-2010 |
| Subject: |
Govt to Decide on Sugar Exports by Month-End Report |
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Indian authorities plan to take a decision by the end of this month on allowing sugar exports after assessing the cane crush, Farm Minister Sharad Pawar was quoted as saying by the Press Trust of India on Thursday.
"I will get the report on full crushing on November 20-21, then I will apply my mind on sugar export (under Open General Licence (OGL))," PTI quoted Pawar as telling reporters in New Delhi.
Global sugar prices, trading at near 30-year highs, hinge on a decision by India on how much sugar to export in 2010/11, in order to fill a supply gap before Brazil's next harvest in 2011.
Analysts have revised upwards forecasts for 2010/11 sugar output in India, the world's number 2 producer after Brazil, while estimates for Brazilian production have been revised lower due to adverse weather.
Indian millers, seeking to lock in on the high prices, have urged authorities to approve 2 million tonnes of OGL sugar exports in 2010/11, analysts say.
However, analysts say Indian authorities are likely to drip feed OGL licences to the market.
"The market is now expecting the Indian government to authorise exports in tranches of, say, 500,000 tonnes at a time, spread over the next few months," said Jonathan Kingsman, managing director of the Lausanne-based Kingsman SA consultancy.
Source : in.reuters.com
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