Buyers should know that Brazil is a large sugar producer (over 36 million tons in 2009), but with very low production of white refined, Icumsa 45 (near 4.5 million tons/year). We should also know that this sugar is disputed by more than 20 large traders. To fulfil the need of sugar producers for finance and security, sugar is traded before production. Therefore, third parties, new comers, will not be able to get large quantities. Most Icumsa 45 is committed in advance to those traders. So, random offers, like 200,000 MT x 12 months, and more, are just nice dreams. Most Brazilian sugar for export is raw brown (VHP), for the refineries to produce Icumsa 45. Brazil also exports large volumes of white crystal sugar, Icumsa 150 (which is perfect for human consumption), mostly in containers.
TYPES/GRADES OF SUGAR
One of the most popular and internationally recognized organizations for specifications for sugar is ICUMSA (International Commission for Uniform Methods of Sugar Analysis). Specification for sugar is very clear, and that's why sellers do not like to send samples. Once buyers clearly specify the sugar they need, reliable suppliers will deliver that sugar (and a Quality Certificate, issued by an internationally recognized inspection company, will be supplied by serious sellers).
We can supply as follows:
• big bags of 1000 kg
• 50 kg pp bags
• 25 kg pp bags
• 1 kg, 2 kg and 5 kg plastic bags
• It is not economically viable to use 40' containers for sugar. Final price is cheaper if in 20'.
• On a 20' container we put 26 tons of Icumsa 45, and 27 tons of Icumsa 150 and 650/1200.
Can be with suppliers' brand, or with buyers' brand, to be agreed.
In our specific case, we prefer to supply smaller volumes (from 150 to 1500 mt per shipment) in containers (up to 27 tons net each, as per buyers' possibilities). It's safer and easier to get smaller volumes. Eventually, we can work full ship loads, but this is not our goal.
Indeed, sometimes we can offer larger volumes, like 10,000 mt or 15,000 mt, provided buyers permit partial shipments. Usually, buyers do not need the sugar to be with them at once. They can buy larger volumes, for weekly shipments, for instance. This can avoid buyers to have large amounts of money blocked.
Buying smallers volumes, in containers, can be cheaper than to buy full ship loads, because freight for chartered vessels became extremely expensive, more expensive than in containers. Also, when in containers, buyers and sellers do not take any risk for demurrage, etc. They know the final cost, in advance.
Within 10/20 days after receipt of payment instrument. Or as per contract.
Market price is available from major commodity news services and newspapers. Sugar is mainly quoted at the London Stock Exchange, LIFFE (for Icumsa 45), and New York Stock Exchange (NYSE) for other grades. Buyers must also know that there may be a premium or a discount on the levels of the Stock Exchange. Circumstances will determine the premium or discount. Of course, it's not true that some suppliers can offer sugar much under the Stock Exchange levels, from Brazil. This information is false. Market prices do not change dramatically in a short period of time, and no method exists by which sugar can be traded at lower prices. Much before looking for price, buyers should look for safety with reliable sources.
1. "High Sea" sugar : This is basically a myth, a phantom, specially when demand is much higher than offer, like it happens now. Any floating sugar now has a firm buyer, who is eagerly waiting for it. High Sea sugar may occur when there is a big surplus, and sellers must clear their warehouse to put new sugar they are producing. At this stage, they take the risk to put the sugar on board, even if they do not have a buyer, and then they desperately start working to find a buyer, even at a discount, to compensate the high daily cost they have to maintain a lazy chartered vessel on the sea, with no destination.
2. Price list : It is very common to receive enquiries asking sugar price list. Being a commodity, there is not a price list. Price is subject to the daily Stock Exchange quotes, which vary at every second (which makes it impossible to talk of a price list).
3. Documents to be supplied by exporters:
o Bill of Lading
o Commercial Invoice
o Packing List
o Certificate of Origin
o Certificate of Analysis (by an internationally recognized inspection company)
o Health/Sanitary Certificate
Introduction –SUGAR INDIA
With over 450 sugar mills, India is the second largest sugar producer in the world. Over 11 million tons of refined sugar is produced, accounting for 60% of the total sugar cane cultivated. Following is the Indian export statistics for sugarcane that counts to about 811027.5 M. Tonnes in the year 2000- 2001.
Sugarcane quantity in M. Tonnes
In India the major sugar cane producing areas are Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu, Uttar Pradesh and West Bengal.
Growth promotional activities
The Indian government has announced their intention to fully liberate sugar sector in phases. The process has been initialized with the following measures:
Setting up of futures / forward market in sugar and has given approval to three exchanges for the purpose of forward trading.
Release of sugar for each factory on quarterly basis instead of monthly basis as is being done hitherto.
To boost the export of sugar from the country the policy allows free export of sugar and factories can also undertake export of raw sugar in addition to mill white sugar.
The Govt. has decided to deferment benefit of adjustment of releases of free sale sugar made for export purposes from 12 months to 18 months.
Also the taskforce for the Tenth Plan has rightly stated that there is a need to improve the sub optimal capacity of many sugar mills in the country and that emphasis should given for sugarcane productivity rather than to target increase in area under the cane crop.
sugarcane tall tropical perennials (species of Saccharum, chiefly S. officinarum ) of the family Gramineae ( grass family), probably cultivated in their native Asia from prehistoric times. Sugarcane somewhat resembles corn and sorghum, with a large terminal panicle and a noded stalk. In biblical times, one of the known sweetening agents in the world was honey. It was not until the Middle Ages that the "Indian honey-bearing reed" was introduced to the Middle East and became accessible to Europe, where sugar was sold from druggists' shelves as a costly medicinal or luxury. Later, sugarcane plants were introduced by Spanish and Portuguese explorers of the 15th and 16th cent. throughout the Old and New World tropics, and the large cane industry rapidly took shape. Today, sugarcane and the sugar beet (see beet ), a temperate plant developed as a commercial sugar source c.1800, are the only two major economic sources of sugar . Cuba and India together produce a large percentage of the world's tropical sugar, cane sugar. Cane is harvested by cutting down the plant stalks, which are then pressed several times to extract the juice. The juice is concentrated by evaporation into dark, sticky sugar, often sold locally. Refined sugar, less nourishing as food, is obtained by precipitating out the non-sugar components. Almost pure sucrose , it is the main commercial product. Byproducts obtained from sugarcane include molasses , rum , alcohol, fuel, livestock feed, and from the stalk residue, paper and wallboard. Sugarcane is classified in the division Magnoliophyta , class Liliopsida, order Cyperales, family Poaceae (Gramineae).
Noca is a direct Sugar supplier.
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