India’s sugar manufacturing will seemingly be decrease at 35.8 million tonnes (mt) this season (October 2022-September 2023) in opposition to trade estimates of 36 mt, the US Division of Agriculture (USDA) has mentioned however Indian stakeholders favor to attend and look ahead to additional developments.
“India manufacturing is estimated to say no 3 per cent to 35.8 mt on decrease sugar yields from sugarcane,” the USDA mentioned in its bi-annual sugar report launched final evening.
That is 0.7 mt decrease than the estimates made by the Indian Sugar Mills Affiliation (ISMA), a physique of personal sugar mills whose projections are extra intently watched by the Centre.
Requested on the USDA’s estimates, an ISMA spokesperson mentioned the affiliation was sticking to its estimates of a file 36.5 mt manufacturing.
The All India Sugar Merchants Associatin (AISTA), one other key participant within the sugar trade, mentioned it agreed with the USDA numbers.
“We concur with the USDA numbers nevertheless it may very well be topic to 5-6 per cent variance on both facet. The final week of January or February first week might be a greater interval to challenge the 2022-23 season manufacturing with minimal error,” mentioned Praful Vithalani, AISTA President.
The USDA estimated international manufacturing 2.8 mt greater at 183.2 mt on greater manufacturing in Brazil, China, and Russia, offsetting declines within the European Union, India, and Ukraine.
It mentioned international commerce might be greater regardless of a drop in Indian shipments. It might be offset by Brazil and Thailand shipments.
Shares draw down
Ending shares are projected to be decrease in view of upper international consumption, exceeding the rise in manufacturing. China is projected to import much less, opting to attract down its shares for consumption, whereas decrease Indian manufacturing will add to the state of affairs. Thailand, too, is predicted to faucet its shares to assist greater exports as a result of sturdy international demand, the USDA mentioned.
On India, the US company mentioned consumption might be unchaged at 29 mt, the identical as final season, whereas exports will decline 20 per cent to 9.39 mt from 11.73 mt final season. Consequently, ending shares is estimated to be decrease.
In line with ISMA, sugar consumption, this season, is predicted to be 27.5 mt, whereas ending shares could be 7 mt, the identical as final season, if the Centre permits 8 mt exports.
The USDA has not made any point out of India’s capping sugar exports at 6 mt for the present season with a rider that the shipments must be executed by Might 31, 2023. The Centre had regulated sugar exports from June 1 at 10 mt to make sure ample provides within the dometic marketplace for the festive season.
Nonetheless, it allowed a further 1.2 mt that had been held up. Sugar exports have been allowed to renew from November 5 after the Centre notified the amount that may be shipped out.
Indian export gross sales 4 mt
London-based diversified international monetary companies platform, Marex, in a report on Monday, mentioned Indian exporters could have offered greater than 4 mt within the international market. It mentioned uncooked sugar may very well be 2.3 mt out of this.
Marex mentioned the online lengthy positions of non-index funds have elevated to 1,32,000 final week from 44,000 the earlier week. The market might head down, although India having offered its shares could not give a lot leeway to the bears, it mentioned.
At the moment, uncooked sugar on InterContinental Alternate, New York, is quoted at 19.64 US cents a pound ($436 a tonne) after hitting a five-week excessive of 20.3 cents on November 15.