August 14, 2010

India resumes "EXPORT" of Sugar

Just heard this line from one of the brokers in Maharashtra almost a fortnight ago. He continued to say that soon this quantity will become from few thousand tons to almost a million or so ton. I argued that this is not possible esp when govt is under so much of pressure of inflation and even allowing wheat to rot then to export. Then he said that this is beyond pure demand - supply equation. Some mills had contracted raws/ whites at peak rates and now finding no domestic takers for sugar as market has crashed. So now option left is to re-export as world market is up on Brazilian port blockage. For that lot of media published on higher than expected 2009-10 season and now bumper 2010-11 season. All this looks linked up.... now whole world knows that India is surplus sugar country hence no one should raise voice to curtail export of sugar.. I think this is very smart....

To me this media highlight of Wheat rotting in FCI godowns also looks made up story to gain public/ political consensus to allow Wheat export.

What you say??? think over weekend and I will be back then with some clarity on these well marketed ideas.

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