)
Sugar imports by India, the world's biggest consumer, are set to surge as a slump in global prices to the lowest level in almost three years spurs purchases by refiners, according to a millers' group.
Processors have imported 1.1 million tonnes of raw sugar since October 1, including as much as 468,000 tonnes for sale in the local market, Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories, said in an interview. An additional 416,000 tonnes has been contracted for delivery in the coming months, he said.
Sugar tumbled to the lowest in 34 months in New York yesterday on signs the harvest is accelerating in Brazil, the world's largest grower. Production globally will be 10 million tonnes more than consumption in 2012-2013, boosting a glut for a second season, the London-based International Sugar Organization said yesterday.
"Imports will increase which will further damp domestic sugar prices," Kumar said by phone. "We don't need sugar imports as there is a surplus locally."
Inventories might jump 45 per cent to 9.7 million tonnes on October 1 from 6.7 million tonnes a year earlier as output exceeds consumption for a third year, Kumar said. That will leave an exportable surplus of 3.87 million tonnes even after keeping about 5.8 million tonnes to meet demand for three months, he said. Futures are heading for a third year of declines, the longest slump since 1992.
