Government has asked Major FMCG to import sugar

Bulk consumer of sugar like Coca- Cola , Pepsico , Nestle , Cadbury , Britannia , Amul , Dabur has been asked by government to source their sugar requirement from imports from overseas country . With festive season starting from the last week of September with Dussehra ,Deepawali festival scheduled in coming months .Government is taking all necessary steps to prevent sugar prices spiraling out of control . Already limits on stocks has been put in place . In addition to that companies are allowed to import raw sugar tax free till December 2010.

India is the largest consumer of sugar as well as second largest producer of sugar after Brazil in the world . Due to shortfall in rains this year sugar production is likely to fall by 15.0 million tonnes . This all have inflated the price in international sugar market as well .

Government authorities have already started importing sugar in view of the shortage.

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Indian Government limit sugar stocks for bulk buyers

Indian government has issued a directives to all bulk buyers of sugar to keep stock upto 15 days of their consumption demand . This ban would be imposed till six months effective from today .


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India is expected to Import 5mn ton of sugar

With low and below average rain fall , Sugar output from India would be low from its earlier sugar productions . This short fall has prompted government of India to Import sugar . This definitely give reason for worry to bakery owners as sugar prices would firm up in coming months as festive seasons would start from next months . Where demands for sweets , confectionery and food items would shoot up drastically .

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http://www.flex-news-food.com/pages/25123/India/Sugar/india-import-million-tons-sugar-0910.html

Sugar prices to increase in coming months

Sugar which is a major ingredients in bakery products along with flour and fat hence any price increas impacts bakery manufacturers .Its prices varies due to numerous factor .

Sugar prices would firm up in coming months up due following developments in International market

• Drop in sugar production in Brazil , Mexico and USA .


• Monsoon Failure in India where India is one of largest consumer of sugar impacting international sugar price.


• Imports by India to cover deficit sugar production .

Current Price of refined sugar in market is around Rs 25- 27/kg and is expected to cross Rs 30/- per kg mark by next month as festival season are to start from next month. Bakery manufacturers have to cover their stocks with forward buying contracts and have to keep track on the developments .
Read Article on ET
http://economictimes.indiatimes.com/Market-News/Sugar-stocks-running-on-empty/articleshow/4791384.cms

Sugar prices to continue upward trend

Recent internatiional sugar organisation prediction is that due to deficit in sugar production ,the prices would maintain upward trend. Sugar is major raw material for bakery products . Any swing in prices directly affects bakers around the world .

Check this news article.