logo
India seen struggling to fulfil sugar export quota, industry sources say

India seen struggling to fulfil sugar export quota, industry sources say

Reuters12-02-2025

DUBAI, Feb 12 (Reuters) - India has exported up to 500,000 metric tons of sugar so far this season, but the pace is already slowing, and it may struggle to fulfil the one million tons allowed by the government, trade and industry sources said on Wednesday.
"There are fears that the one million (ton) quota could actually be reduced," Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories, told Reuters on the sidelines of the annual Dubai Sugar Conference.
India last month allowed exports of 1 million metric tons of sugar during the current season to September 2025 to help mills of the world's second-biggest producer export surplus stocks and prop up local prices.
Naiknavare said exports so far had totalled around 500,000 tons and have mainly focused on neighboring countries Sri Lanka, Bangladesh, and Nepal, as well as Eastern Africa.
Shashikant Pandhare, head of research at Meir India, put exports so far as only 400,000 tons at most and added the pace was slowing down.
He noted mill closures in northern India and struggles elsewhere due to poor harvest conditions.
The closures suggest India will produce less sugar than initially estimated and have lifted local prices, making India less competitive on global export markets.
"I think at most 700,000 tons will be exported by September but I doubt the government will make any changes to the quota," he told Reuters.
Pandhare said there has been a surge in demand from countries with significant Muslim populations, such as Tanzania and Bangladesh, in anticipation of Ramadan, which is set to begin around February 28.
Sanjeev Mishra, the chief executive officer of Tanzania's Kagera Sugar, said, however, that Indian exporters were currently offering at "unrealistic prices" compared to other global sources.
India's decision to allow sugar exports this season was a surprise to some traders with stocks expected to fall this season following crop problems.
Ashwini Srivastava, joint secretary in India's Department of Food and Public Distribution, told the conference that stocks were set to fall to six million tons by the end of this season, down from eight million a year earlier.
Trader and industry sources, however, said the outlook for the 2025/26 cane crop was currently more favourable.
Anup Kumar, managing director of Sucden India told Reuters there was a "very good crop coming" although the size was not yet clear.
He estimated, however, that only around 150,000 tons had been exported so far, mostly to countries around the Indian Ocean.
Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

South African rand shrugs off weak manufacturing data
South African rand shrugs off weak manufacturing data

Reuters

timean hour ago

  • Reuters

South African rand shrugs off weak manufacturing data

JOHANNESBURG, June 10 (Reuters) - The South African rand strengthened on Tuesday despite a sharp contraction in local manufacturing output, as investors waited for more clarity on U.S.-China trade talks. At 1415 GMT, the rand traded at 17.69 against the dollar , about 0.2% stronger than Monday's closing level. South Africa's manufacturing output (ZAMAN=ECI), opens new tab fell 6.3% year on year in April, the sixth consecutive monthly decline, statistics agency data showed on Tuesday. Analysts polled by Reuters had expected a drop of 3.9%. Weakness in the manufacturing sector was one factor behind the first quarter's sluggish growth of just 0.1%(ZAGDPN=ECI), opens new tab, offsetting a strong performance by agriculture. The rand was also supported on Tuesday by a stronger global gold price and by a weaker U.S. dollar . The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was last up 0.6%. The benchmark 2035 government bond was stronger, as the yield fell 4 basis points to 10.095%.

Kenya central bank cuts main lending rate to 9.75%
Kenya central bank cuts main lending rate to 9.75%

Reuters

timean hour ago

  • Reuters

Kenya central bank cuts main lending rate to 9.75%

NAIROBI, June 10 (Reuters) - Kenya's central bank cut its benchmark lending rate (KECBIR=ECI), opens new tab to 9.75% on Tuesday from 10.00% previously, the bank's Monetary Policy Committee said. It was the sixth monetary policy meeting in a row that the Central Bank of Kenya has lowered the rate. "There was scope for a further easing of the monetary policy stance to augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity," the bank said in a statement. Economists polled by Reuters had been divided on what the central bank's decision would be. Out of seven forecasts three were for a cut, three for no change in the policy rate and one for a hike.

Modest UK economic growth to lead Bank of England to cut rates gradually: Reuters poll
Modest UK economic growth to lead Bank of England to cut rates gradually: Reuters poll

Reuters

time2 hours ago

  • Reuters

Modest UK economic growth to lead Bank of England to cut rates gradually: Reuters poll

BENGALURU, June 10 (Reuters) - The British economy will grow a mild 1% this year with the Bank of England set to cut interest rates two more times in 2025, according to economists polled by Reuters, little changed from previous projections despite tariff uncertainty. The survey was completed before finance minister Rachel Reeves' planned comprehensive spending review on June 11, with the biggest increases expected to focus on health and defence. Median expectations in the June 5-10 poll of 52 economists showed the economy growing 1.0% this year - a view largely unchanged since February - and accelerating slightly next year to 1.2%. That compares with a 1.1% expansion in 2024. Poll forecasts match the Office for Budget Responsibility's latest projections. The UK economy grew 0.7% in the first quarter, topping expectations, but growth is expected to slow to 0.1% this quarter and 0.2% in the third quarter, followed by a 0.3% rise in the final three months of 2025. "Fundamentally we haven't changed our growth forecast for 2025 for the past few months because tariffs won't have a huge impact on the economy. The car industry, steel, pharmaceuticals are in the firing line but as a proportion of GDP, UK goods exports to the U.S. are only about 2%," said James Smith, economist at ING. Britain is the only major economy to have agreed a trade deal with the U.S., exempting it from President Donald Trump's increased tariffs on steel and aluminium imports for now, but a 10% goods levy remains in place. The Bank of England is forecast to keep its Bank Rate on hold at 4.25% next week, followed by a likely one quarter-point rate cut in August and another in the final three months of the year to 3.75%, according to a large majority of the 59 economists polled. Markets are also pricing in two further rate cuts this year after official data on Tuesday showed a slight rise in the jobless rate and a slowdown in wage inflation. The central bank's Monetary Policy Committee may be more confident now about sticking to its gradual easing path, economists said. "Today's weak jobs and slower pay growth may tip the balance in favour of an August cut," noted Elizabeth Martins, senior UK economist at HSBC. "Certainly, market pricing for such an outcome has increased." Overall, inflation was expected to remain elevated at an average 3.4% this quarter and 3.3% the next, before easing below 3.0% early next year, poll medians showed. (Other stories from the Reuters global economic poll)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store