Where would that set the demand supply mismatch?
You would have a surplus of about 2-2.5 million. Now there are old export obligations of people who had imported raw sugar in the period 2003-05. Government has extended those export obligations repeatedly because of the shortage in the country though the exports are due out, close to a million tonne due out by March 31, 2011. I would expect additionally another million-two million would flow out as soon as the domestic new season starts and government is more comfortable with the stocks in the country. Q: Where does that leaves local prices and realisations which have been under pressure, despite global raw prices having gone up quite significantly? A: Absolutely, I do not think there is any room for domestic prices to go lower in the context of the firm global environment. The rest of the world is in deficit without Indian supply. The world market will remain at a level which makes it attractive for India to export a little. Our prices in India would be more tending to the export par
