Indian white sugar prices rose further this week after poor monsoon rains prompted exporters to hold back stocks, while neighbouring Pakistan may issue export licences soon, dealers said on Wednesday. In Southeast Asia, Indonesia was to release import permits for 260,000 tonnes of raw sugar, an Agriculture Ministry official said, as the region's largest consumer looks to increase stock levels for next year.
Indian white sugar was quoted at as high as $640 a tonne free on board, higher than $630 last week and $600 two weeks ago. Thai whites were offered at up to $20 premiums to London futures, making it much cheaper than Indian sugar. "The price is really high. Some are quoting sugar at $630 and $640, and even at those prices, you may not be able to get it. They are holding the cargoes. They don't want to sell," said a dealer in Singapore.
"I think India would rather sell sugar in the domestic market," said the dealer, referring to the world's top consumer. India has released 400,000 tonnes of additional non-levy sugar for the September quarter as it aims to rein in prices during the Muslim holy month of Ramadan, which ends in about two weeks, and a later Hindu festival, and is also considering imposing a tax on exports.
Pakistan could take advantage of India's absence in the export market by issuing licences to traders to sell sugar in the international market, having officially announced in May it would allow the export of 200,000 tonnes of whites. "They are gearing up to export sugar again. Nothing is firm but they have been offering sugar at below $600 a tonne. The licences are expected to be issued any day now. They are already marketing their sugar," the Singapore dealer said. Thai refined sugar, which competes with Indian whites, was traded this week to consumers in Southeast Asia at premiums of $15 to $20 a tonne to London's October contract. Premiums stood at $20 to $30 last week.
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