India likely to free sugar exports soon

Move could push New York futures from 30-year highs by eliminating uncertainty over the exportable surplus.

NEW DEHLI: India may soon permit unrestricted exports of sugar, in a move that could push New York futures from 30-year highs by eliminating uncertainty over the exportable surplus of the world’s second largest producer of the sweetener.

World markets are waiting for exports from India to fill rising demand from countries such as Pakistan, Indonesia and Russia, particularly when output from Brazil – the top producer – promises to be lower due to concerns over the weather.

On Wednesday, the president of producer group the Indian Sugar Mills Association said India was likely to free up sugar exports soon and might also permit export of two million tons under its Open General Licence. Total sugar exports may be 3.5 million tons.

The OGL is a permit by which Delhi allows overseas sale of the sweetener with no curbs.

“There is no concern on production and exports. We will have an exportable surplus of two million tons under OGL which we expect the government to open up soon,” Vivek Saraogi said.

Published in The Express Tribune, November 11^th, 2010.