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Thursday, August 6, 2009

Indian Sugar .Cos Expect Prices To Remain Firm Till 2011

International sugar prices have hit new highs. There are expectations of huge demand from India.

Speaking on the soaring sugar prices, Vivek Saraogi, Managing Director of Balrampur Chini, said there was shortage of sugar across the world. Brazil harvest may be low on excessive rain, he said. He didn’t see a bubble in the sugar prices. However, he expected the Indian sugar prices to remain firm.

He denied stake sale rumours and added that rumours had emanated from lapse of warrants. He said he was not interested in selling stake in the company.

He further said state advised price (SAP), statutory minimum price (SMP) issue could be solved only by Supreme Court (SC).

M Manickam, MD, Sakthi Sugars, said European Union and India would see net import of 15 million tonne (MT). Agreeing with Mr Vivek Saraogi, he said, the Indian sugar prices would remain firm till 2011.

We had few changes over the last five-six years; one very important change was the European Union refusing to give subsidies anymore, so that change began. Then outside of Brazil, India from surplus moved into shortage. If you see the neighboring countries be it Pakistan, Sri Lanka, Iraq, Bangladesh, you name it and outside of Brazil the globe is in shortage. So, I think this price is reacting to that. In Brazil also for e.g. our ship was suppose to leave, the raw sugar we imported but it got delayed for seven days because of rainfall. So I think Brazil’s harvest is not good.

source: MC

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