India's Silkroad Sugar Pvt Ltd has imported 25,000 tonnes of raws from Brazil, and will buy more after its coastal refinery begins operations in April, company and trade sources said on Friday. Silkroad Sugar, a joint venture of EID Parry (India) Ltd and Cargill Inc [CARG.UL], is based in the southern port city of Kakinada and will be able to refine 600,000 tonnes of sugar a year.
"We are going to begin production from April with the help of one shipment that we have received from Brazil," a company official, who did not wish to be identified, told Reuters. "Once production stabilises after we begin processing in April, we will again start importing raw sugar," he said.
Trade sources say Indian firms, including Silkroad, have bought cargoes at an average $285-$310 per tonne, but the Silkroad official, who is not authorised to talk to reporters, did not give price details. Imports of raw sugar are attractive for coastal units like Silkroad and Shree Renuka Sugars' 2,000 tonne per day refinery on the east coast, which plans to ship in 500,000 tonnes of raws in 2008/09.
Indian mills' plans to import about 1.5 million tonnes of raws helped New York sugar prices touch a four-month high of 13.37 cents last week. On Thursday, ICE May raw sugar finished up 0.16 cent at 13.17 cents per lb. Indian has allowed mills to import duty-free raws between February 17 and September 30, when the season ends. Mills importing duty-free raws for domestic sale will have to export an equal quantity of whites within two years.
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