The central government has imposed a 20 % export duty on sugar but M Manickam, Executive Vice-Chairman of Sakthi Sugars , cleared this is not enough to cause local sugar prices to fall. “Domestic sugar prices have gone past international prices,” he stated in an interview right here.
The company exported no sugar in FY16, he made cleared in a statement, adding that the domestic prices will hike up owing to the shortage of production in sugar segment. He made it more clear that the struggling sugar trade industry will be back in shape “if prices stay between Rs 35 & 40 a Kilogram and most of the balance sheets will recover by next year as proposed.” He added that the sugar production will not get up the pace until FY19.
In another statement, he made another statement in this concern. In fact, I don’t see this as a major impact because if you remember the government was trying to export 4 million tonnes of sugar with incentives earlier and then they withdrew the incentives over a months back and now they have actually given a disincentive for exports.
I don’t think this is going to be a much of an impact because the domestic prices have picked up beyond international prices, so I don’t really feel that will be an impact on the domestic market. Get the import export data for better future forecast on Sugar export.
