India may delay sugar exports to curb inflation
Unrestricted exports of 500,000 tonnes of sugar from India may be delayed, trade and industry sources said on Friday.
January 08, 2011 / 12:06 IST
Unrestricted exports of 500,000 tonnes of sugar from India may be delayed, trade and industry sources said on Friday.
The sources said the government may wait for a clearer picture on 2010/11 sugar output."There may be some sort of review of last month's decision. And, therefore, exports may get delayed. The main priority of the government seems to be to check high food prices at any cost," a trade official, who did not wish to be identified, said.The Indian government is battling very high food inflation and facing mounting criticism over its inability to keep a lid on prices.India, the world's biggest producer after Brazil, last month allowed exports of 500,000 tonnes of sugar under unrestricted terms, popularly termed sales under Open General Licence (OGL), as production looks set to exceed demand.Trade and government officials say India, the world's top sugar consumer, is poised to produce 24.5 million tonnes of sugar in the season which started in October 2010, up from 18.8 million in the previous year.Sugar futures on ICE rose sharply on Friday on talk that shipments from India may be delayed, heightening concern about nearby supply tightness.March raw sugar futures on ICE stood 1.38 cents or 4.6% higher at 31.61 cents a lb at 1824 GMT after rising sharply on trade and fund buying."There is speculation that the OGL export scheme in India is being reviewed and possibly cancelled," said Jeff Bauml, a senior vice president with RJ O'Brien & Associates in New York."There's rampant talk about this in the market, however we believe OGL will be kept in place," he added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
