Raw sugar may rebound as the biggest slump in 22 years attracts buyers amid signs that global demand for the commodity exceeds supply, according to Simbhaoli Sugars Ltd. and other Indian producers. The market will come back with solid foundation because physical buyers will become active, according to Sanjay Tapriya, finance director at Simbhaoli.
Raw-sugar futures tumbled the most since July 1988 on Nov. 12 as speculation that China will raise borrowing costs roiled commodity markets. Prices reached a 29-year high on Nov. 9 as drought and floods damaged crops in Brazil, Russia and Pakistan. Brazil hasn’t improved its production and China, Russia and Pakistan are still looking at imports, according to Abinash Verma, director general of the Indian Sugar Mills Association. This demand is expected to be met from India.
The global raw-sugar surplus may be 2 million tons in 2010- 2011, down from 3.22 million forecast two months earlier, Sergey Gudoshnikov, economist at the London-based International Sugar Organization, said in an interview Oct. 26.
India’s government will decide on ending curbs on exports completely after Nov. 21, according to Farm Minister. The country may have a surplus of 3.5 million metric tons in the year than began Oct. 1 after keeping aside 4 million tons for the next season.
| Company Name | CMP |
|---|---|
| Shree Renuka Sugar | 28.14 |
| Bajaj Hindusthan Sug | 18.80 |
| Triveni Engg. & Inds | 393.00 |
| Balrampur Chini Mill | 486.00 |
| Dalmia Bharat Sugar | 394.05 |
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