Massive fires in Brazil have damaged sugarcane crops in the country’s top sugar-producing state, São Paulo, leading to a spike in international sugar prices, following which the Indian sugar industry sees an export opportunity.
October NY world sugar #11 (SBV24) Tuesday closed up +0.56 (+2.94%). Oct London ICE white sugar #5 (SWV24) closed up +22.30 (+4.24%).
The sugarcane industry group Orplana reported that approximately 2,000 fires over the past weekend affected up to 60,000 hectares of sugarcane plantations in São Paulo. Green Pool Commodity Specialists estimate that these fires may have resulted in the loss of up to 5 million metric tonnes of sugarcane.
Amid concerns over Brazil’s supply following fire in sugarcane feilds and good international prices, the Indian sugar industry is urging the government to permit sugar exports.
While speaking to ChiniMandi, Deepak Ballani, Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), said, “Taking into consideration the closing stock on September 30 and the very encouraging production figures for next year, exporting 2 million tonnes at this time will provide significant relief to the industry. Allowing exports would not only ensure a comfortable stock for domestic consumption and sustain the Ethanol Blending Programme (EBP), but also contribute to maintaining the financial liquidity of sugar mills, enabling timely payments to farmers.”
ISMA, the apex body in the sugar and bio-energy industry in the country, predicts a significant sugar surplus for the current season. It has previously urged the government to reconsider permitting the export of surplus sugar after carefully assessing domestic demand and supply.
Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars, also believes there is a good opportunity for India to export sugar. He said, “The increase in international sugar prices is definitely a good opportunity for India to export about 2.0 million tonnes of sugar. This will help reduce the financial burden on the sugar industry and enable timely payments to farmers during the upcoming season.”
BM Agarwal of Birla Sugar stated, “The current favorable conditions in the international sugar market, combined with a positive production outlook for India’s sugar industry in the upcoming 2024-25 season, present a strong case for permitting sugar exports from India. This environment offers a significant opportunity for Indian sugar exporters to leverage these favorable market dynamics. We urge the Government to consider allowing sugar exports of up to 3 million tonnes for the 2024-25 season. We are confident that the proposed export quantities will not compromise domestic sugar availability. Rather, it will ensure a balanced approach that meets domestic demand while positioning India advantageously in the global sugar market.”
As per reports, São Paulo Governor Tarcisio de Freitas mentioned that firefighters had successfully extinguished the fires by Monday but said 48 municipalities would remain on high alert to prevent new outbreaks.
