Sugar prices remain under pressure build-up suggestions from India

Fall in world sugar prices by more than 20% within 2018 in connection with the growth of production in the largest producers of sugar cane in Brazil and India, has led to an increase in carryover.

the Rise in oil prices since the beginning of the year more than 20%, supported by quotations for sugar, which with the new year on the new York stock exchange rose by 9.2% and trading at 282$/t in the Spring of 2018, a record harvest of cane in Brazil continued pressure on prices, which are up to August fell to the level of 222$/ton .

sugar Production in India will again be at about 32mln tons compared to a record 32.5 million tons in 2017/18МГ, this exceeds the local demand, which is about 26 million. The export of surplus sugar is low rates due to high production costs. In the 2017/18 year, exports amounted to only 620,0 thousand tons with plans about 2 million tons, which led to a rise in sugar stocks to 10.7 million tons by the beginning of the new season.

this year, the Indian sugar exports is likely to be much below the target of 5 million tons, set in new Delhi, as the strengthening rupee and falling international prices makes the supply of unattractive despite government incentives for overseas sales, said industry representatives.

India is probably the exports from 2.5 million to 3.5 million tonnes of sugar in marketing year 2018/19, which began on 1 October, reported Reuters five dealers, and three representatives of the industry.

"the Factories are not willing to sign new contracts, because of the difference in local and international prices increased," said a Mumbai-based dealer with a global trading company which is exporting sugar from India.

According to dealers, sugar is sold in India at a price of about 29 200 rupees ($ 414) per tonne, while the exporters receive less than 19 000 rupees ($270) per ton.

in addition, the rupee rose by 5.5 per cent to 70.5 per dollar from a record low of 74.48 rate against the US dollar in October, which reduced the margin from foreign sales.

This will complicate the achievement of the Sep objectives for the 2018/19 year, despite government incentives, such as transport subsidies and direct payments to farmers to encourage processors to send the surplus sugar abroad.

the Indian factories signed contracts for export of 1.4 million tons of sugar since the beginning of the marketing season October 1, shipped at the moment, about 650 thousand tons.