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Strong export helps UP sugar factory enjoy 10% more when selling export quota


Strong profit on Street export helped sugar factory are from Uttar Pradesh arrive purchase of them export quota at about 10% higher than the prevailing market price for exported white sugar. According to trade sources, UP mills sold 5-6 thousand tons of their export quota at an average price of Rs 4/kg.

The 2022-2023 sugar export policy announced this month allows a sugar mill to swap its export quota with another mill’s domestic consumption quota. Industry insiders said that although some exporters have purchased export quotas, others want the government to clarify whether the policy allows trading in export quotas.

Many sources where ET spoke in Indian and multinational company The exporting community does not want to be identified. “Some exporters from the west coast have bought export quotas around 5-6 thousand tons from sugar mills from Uttar Pradesh,” said one person. The rate at which the export quota is being traded is from Rs 3.50/kg to Rs 4.50/kg.”

Traders told ET that sugar mills from Uttar Pradesh are more interested in direct export of refined sugar, which is selling for around Rs 39-40/kg compared to Rs 37/kg reported quotes for low grade sugar. White crystal Street. “Instead of exporting white sugar, it is more profitable for UP mills to sell their export quota at a higher price. As a result, UP mills have booked this premium on sugar they have not yet produced,” said a trader from MNC trader, quoted above.

“When the international market is good, it is accepted that the seller of the export quota will demand a share of the profits that the exporter will earn,” said a leading sugar mill from Uttar Pradesh.

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