Even as the International Sugar Organization (ISO) has raised its forecast for 2018-19 global sugar surplus to 1.83 million tonnes, up from its previous estimate of 641,000 tonnes, thanks to increased production in India and Thailand as well as a diminished outlook for sugar consumption, Maharashtra and Tamilnadu in India are reporting huge output cuts […]
Global food prices rose for the fifth consecutive month in May, pushed up by rising prices of cheese and maize due to adverse weather conditions. The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 172.4 points in May, up 1.2 percent from the previous month while […]
The Indian government is planning to provide one kg of sugar to an additional 16.3 crore families through the public distribution system (PDS) at a subsidised rate that will cost the exchequer Rs 4,727 crore and is also mulling offering additional foodgrains from buffer stock to clear storage ahead of monsoon. According to sources, the […]
The sustainability of recovery in sugar prices recently to around Rs. 33,000-33,500/MT (ex-mill UP) from Rs. 31,000/MT in April 2019 seems uncertain given the significant oversupply conditions in the domestic market, ratings agency ICRA said in a note. The expectation of a decline in the cane availability in the key sugar producing state Maharashtra for […]
The latest World Agriculture Supply and Demand Estimate report from the U.S. Department of Agriculture (USDA) gave the following projections for various crops for 2018/19. World 2018/19 wheat supplies are raised 2.1 million tons due mainly to increased beginning stocks that largely reflect multi-year revisions for Iran. Global production and exports are each reduced fractionally, […]
India’s sugar production rose by 6% to 273.47 lakh tonnes till March 15, 2019, the Indian Sugar Mills Association (ISMA) said in a statement. On the corresponding date last year, 258.20 lakh tonnes had been produced with 399 mills operating as on 15th March 2018, the industry data said. “During 2018-19 SS, 527 sugar mills […]
Global food prices rose in February, with the FAO Food Price Index averaging 167.5 points, up 1.7 percent from January, in part driven up by sharp increases in dairy prices. The Index, which is an indicator of the monthly changes in international prices of a basket of food commodities, is currently at its highest level since August […]
A government decision to approve Rs. 2790 crore interest subvention for extending loan amount of around Rs. 12,900 crore by banks to India’s sugar mills for augmentation of ethanol distillery capacities is a positive given the oversupply conditions, ratings agency ICRA said. The move is likely to address the current supply-demand imbalance over the medium […]
Authors: Ms. Khushbu Lakhotia, Senior Analyst, Corporate Ratings, India Ratings and Research (Fitch Group) & Mr. Jinesh Rajpara, Analyst, India Ratings and Research (Fitch Group) The recent hike by Rs. 2 per kilogram (kg) in the minimum selling price (MSP) of sugar to Rs.31 per kg could generate an additional income of Rs.30-35 billion for […]
For the first time in five years Indian traders will export raw sugar to Iran for March and April delivery as Iran struggles to secure food supplies under sanctions imposed by the United States, Reuters reported. Under the sanctions, Iran is blocked from the global financial system, including using U.S. dollars to transact its oil […]
