Sugar companies in Kenya owe millions of dollars in salaries to employees - Published on: 12.08.2019
Sugar companies in Kenya owe millions of dollars in salaries to employees
Sugarcane scarcity, bad financial condition has impacted the sugar companies in Kenya, and therefore mills are struggling to survive. According to the reports, sugar companies in the country owe USD 27.2 million to mill workers.
Chemelil, Muhoroni, Sony, Mumias and Nzoia companies are yet to pay their workers from the last several years.
Management from Chemelil cites a decline in sugarcane supply, low sugar price and high cost of production as a reason for the non-payment of workers salary.
In March 2019, farmers stopped sugarcane supply to sugar mill due to pending dues, following which mill had to shut the milling operations.
The financial condition of workers associated with these mills is worsening day-by-day as they have not received salaries from many years. Workers claim that they are unable to feed their families, nor able to pay school fees of their children.
Sugar exports from Brazil plunge to 10-year low - Published on: 01.08.2019
Sugar exports from Brazil plunge to 10-year low
ugar export by Brazil is impacted at a time when nations seasonal peak approaches. According to the reports, the country is likely to export 364,339 metric tonnes of sugar in coming weeks, which is comparatively half of the quantity scheduled a year ago. Last year, Brazilian sugar exports tumbled to the lowest since 2008, after abundant global supplies pushed down futures in New York, which forced sugar mills to divert more cane towards Ethanol rather than sugar.
It is citied that demand is weak because buyers are still stuck with sugar stocks following years of global surplus. The government data shows shipments are down 21 per cent in the first half versus the same period of 2018.
As per the Unica report, about 11 per cent less sugar is being produced this year compared to the same period last year.
Recently, Brazil dragged India to WTO over Indian sugar subsidies alleging that it is inconsistent with global trade rules and distorting the sugar market.
Srilanka to boost country’s sugar production - Published on: 01.08.2019
Srilanka to boost country’s sugar production
Srilanka is eyeing to boost the country's sugar output. The cabinet gives its nod to the government to declare the sugarcane as a major plantation crop in the country to meet the target.
Srilanka's annual sugar consumption is 670,000 metric tons and out of which they import 91 per cent to fulfill their requirement. The country bears 350 million USD for the same.
Sugar is considered as one of the main food items consumed in Sri Lank. By 2020, the country's domestic consumption is likely to surge up to 700,000 metric tons; therefore government is working on measures to reduce the import by increase domestic sugar production. Also, lands around 104,000 hectares have been identified to meet the requirement.
Kenya: Busia Sugar Industry refute sugarcane smuggling claims - Published on: 31.07.2019
Kenya: Busia Sugar Industry refute sugarcane smuggling claims
After the allegations that Busia Sugar Industry is involved in sugarcane smuggling from Uganda in Kenya, now the company's management has refuted the claims.
In a released statement to the media, the company said, "It crushes raw material sourced from its locally contracted farmers."
The firm stated, “The allegation by some individuals that we are smuggling sugarcane could have resulted from the sight of our tractors and other private trucks contracted by BSI to ferry cane from border areas on the Kenyan side."
The company was responding to an allegation made by sugarcane farmers association last week. Kenya Association of Sugarcane and Allied Product had suspected the foul play in bringing the sugarcane into the country and expressed dissatisfaction over no arrest in this regard.
According to the reports, sugarcane farmers in Uganda’s Busoga sub-region are stuck with sugarcane due to low demand from sugar mills. Following the excess sugarcane in the region and no taker of it, there were plans to export unprocessed raw materials to neighbouring Kenya. But, Uganda’s government opposed to the proposal of export.
Kenya’s National Federation of Sugarcane Farmers indicates worst ever crisis in the industry - Published on: 30.07.2019
Kenya’s National Federation of Sugarcane Farmers indicates worst ever crisis in the industry
According to the reports, Kenya National Federation of Sugarcane Farmers has indicated that the industry is suffering the worst raw material crisis ever owing to meagerness in laws to regulate the industry and sugarcane plunders.
The yields of sugarcane crop in the country have dreadfully dropped from 65.5 tonnes per hectare three years ago to 40 tonnes in the current year. Speaking to the farmers, the federation’s chairman Ibrahim Juma shared insights that the domestic sugar industry has been recording deficit in cane supply adding pain to the already struggling sugar factories in the country.
This situation has further complicated the plans of the Kenyan government to restore operations at Mumias where it holds 20% stake.
Nepal: Demand to revive sugar import restriction - Published on: 30.07.2019
Nepal: Demand to revive sugar import restriction
A week after Nepal has lifted the sugar import restriction in the country, Industrialists have requested the government to revive it. They claim that the country has sufficient amount of sugar for the next few months, so there is a no need for the import.
They urged the government to bar sugar traders from importing the sweetener till the Dashain festival, which is two months away.
Nepal Sugar Producers’ Association has written a letter to the government to consider their demand for sugar import restriction.
Earlier, the government continued ban of sugar import for the next three months, which was initially in place only till mid-April. The ban was imposed after the domestic sugar industry claimed that they could not compete with sugar from other countries. The excessive supply of cheaper foreign sugar in the domestic market had lowered the demand for comparatively costly Nepali sugar.
In March 2018, the govt had raised import duty on sugar to 30 per cent from 15 per cent to promote domestic sugar. However, even after that local sugar mills were struggling, following which Government banned the import of sugar to assure a market for domestic produce.
Kazakhstan wants to reduce dependency on imported sugar - Published on: 29.07.2019
Kazakhstan wants to reduce dependency on imported sugar
Kazakhstan, who is relied on other countries for sugar, wants to reduce its import dependency. The country is mulling over building two sugar plants, which will aid in good sugar production in Kazakhstan. According to the reports, sugar plants will be made in Zhambyl and Pavlodar regions at the cost of 775 million dollars. They will use local raw materials, and it will have a capacity of 100,000 tonnes per year.
Sugar factories belonging to Central Asian Sugar Corporation suspended its activities for several months, which hampered the sugar production. Compared to 2018, sugar output in the country fell 45.4 per cent in the first five months of 2019.
Sugar industry experts feel after the commencement of new plants, it will aid in combating the decline. The plant cost in the Zhambyl is expected to be 208 million dollars, whereas in Pavlodar it will cost 568 million dollars. In the Zhambyl, the plant will get sugar beet from the Chu district.
The average sugar consumption per year in the country is around 5 lakh tonnes, out of which 90 per cent of the domestic market demand is provided by processing imported cane raw sugar and importing ready-made sugar. The country mainly imports sugar from Russia and Belarus.
Kenya: Farmers allege sugar mills are smuggling sugarcane from Uganda - Published on: 27.07.2019
Kenya: Farmers allege sugar mills are smuggling sugarcane from Uganda
Sugarcane farmers in Kenya’s Busia city alleged that local factories are involved in the smuggling of sugarcane from Uganda. They claim it is being smuggled through the porous Busia border.
Now, sugarcane farmers associations have come forward to raise their voice against this activity. Kenya Association of Sugarcane and Allied Product (Kasap) National General Secretary Peter Odima and Busia Outgrowers Company director Lambert Ogochi urged police to act on this.
Odima suspects foul play in bringing the sugarcane into the country and expressed dissatisfaction over no arrest so far have been made in this regard.
Ogochi said, “Procedures should be followed while importing sugarcane from Uganda. We are not against the cane importation in the country.”
Cane growers in Uganda’sBusoga sub-region are stuck with sugarcane due to low demand from millers. Following the excess sugarcane in the region and no taker of it, there were plans to export unprocessed raw materials to neighbouring Kenya. But, now according to the reports, Uganda’s government opposed to the proposal of export.
Thailand increases sugar tax; to come into force from October 1 - Published on: 26.07.2019
Thailand increases sugar tax; to come into force from October 1
People in Thailand may have to shell out more money for sugar drinks as the Thai government increases sugar taxes, which is going to take effect from October 1.
In line with the Excise Tax Act 2017, sugary beverages are going to be taxed at a higher rate. Tax will be calculated on per 100 ml of the beverage volume.
This is the second time government hiked sugar tax, and according to the reports third increase is scheduled for October 1, 2021. Also, it is likely that with the surge in a sugar tax, it may impact on sugar usage. It has been introduced to reduce sugar consumption and to promote a better and healthy life.
Sugar drinks containing 10g of sugar per 100 ml of the product will not be taxed. But drinks in the 10-14g range will be taxed 1 baht per litre, from 14 to 18 g – 3 baht per litre, and over 18 g of sugar per 100 ml – 5 baht per litre.
Many countries, like the United Kingdom, France, Ireland, Saudi Arabia, Portugal, and as well some US states, have introduced a tax on sugary drinks over the past few years.
Government notifies sugar export quota to European Union at concessional rates - Published on: 25.07.2019
Government notifies sugar export quota to European Union at concessional rates
New Delhi: As Indian sugar Industry is struggling with surplus sugar stocks, the government is leaving no stone unturned to boost the financial condition of sugar mills. Like every year, the Central government has fixed an export quota of 10,000 tonnes of sugar (raw and/or white sugar) to the European Union (EU) under a CXL concession for the period of 01 November 2019 to 30 September 2020.
Traders can export sugar at low or zero customs duty by availing the CXL concession on export to the EU.
The release of sugar under this concession is subject to the presentation of a Certificate of Origin issued by the competent authority. The released public notice states that Certificate of Origin shall be issued by the Additional Director General of Foreign Trade, Mumbai and EUR Form is to be endorsed by Customs at the Port of Shipment.
Recently, various countries have cornered India by knocking the door at WTO over export subsidies. They allege India’s subsidies are inconsistent with global trade rules and distorting the sugar market. The Indian government is also mulling over framing new sugar export policy to reduce surplus and address the concerns of the troubled sugar industry.
There is nothing wrong with sugar, says Coca-Cola Company CEO - Published on: 23.07.2019
There is nothing wrong with sugar, says Coca-Cola Company CEO
The global chief executive officer (CEO) of The Coca-Cola Company, James Quincey, said that sugar is not a villain to public health in itself and that the problem is consuming it in large amounts.
Quincey said in an interview to the Brazil’s UOL news website that the company is adapting its portfolio to offer products with less sugar and in smaller packaging, in order to address concerns related to obesity. The company supports the goals established by the World Health Organization (WHO) but doesn’t have a specific goal to reduce sugar content in its products, he added.
“We did not set a goal because we are trying to help every consumer. What we are trying to do is supporting the WHO’s goal to help people consume a maximum of 10% sugar in the total daily calories. Each person will reach that number in a different way by consuming different drinks,” he said.
Bunge and BP’s joint venture “BP Bunge Bioenergia” to play significant part in meeting Brazil’s demand for biofuels and biopower - Published on: 23.07.2019
Bunge and BP’s joint venture “BP Bunge Bioenergia” to play significant part in meeting Brazil’s demand for biofuels and biopower
According to a Press Release, Bunge Limited announced its Joint Venture with BP after entering a Business Combination Agreement relating to their sugar and bioenergy operations in Brazil.
As stated in the Business Combination Agreement, Bunge and BP will contribute their respective interests in their Brazilian sugar and bioenergy operations to the Joint Venture. Bunge will receive cash proceeds of $775 million in the transaction, comprising $700 million in respect of non-recourse Bunge debt to be assumed by the Joint Venture at closing, and $75 million from BP, subject to customary closing adjustments. Bunge intends to use the proceeds to reduce outstanding indebtedness under its credit facilities. The Joint Venture agreements will provide for certain exit rights of the parties, including private sale rights beginning 18 months after closing and the ability by Bunge to trigger an initial public offering of the Joint Venture after two years from closing, enabling future monetization potential. The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions, including receipt of required regulatory approvals.
Gregory A. Heckman, Bunge’s Chief Executive Officer, said, “This partnership with BP represents a major portfolio optimization milestone for Bunge which allows us to reduce our current exposure to sugar milling, strengthen our balance sheet and focus on our core businesses. We have a strong, committed partner in BP, as well as flexibility in the medium and long term for further monetization, with full exit potential via an IPO or other strategic route.”
The joint venture, to be called BP Bunge Bioenergia, will operate on a stand-alone basis, with a total of 11 mills located across the Southeast, North and Midwest regions of Brazil. With 32 million metric tonnes of combined crushing capacity per year, the joint venture will have the flexibility to produce a mix of ethanol and sugar. It will also generate renewable electricity – fuelled by waste biomass from the sugar cane – through its cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid. BP and Bunge’s assets are largely complementary, with sites in five Brazilian states including three in the key region of Sao Paulo. The combined business will be ranked the second largest player in the industry in Brazil by effective crushing capacity.
Dev Sanyal, chief executive of BP Alternative Energy, said: “Biofuels have a key role to play in the energy transition and Brazil is leading the way by developing this industry at scale. In one step, this agreement will allow BP to significantly grow the size, efficiency and flexibility of our biofuels business in one of the world’s major growth markets. With our shared commitment to safety and sustainability, the combination of BP and Bunge’s assets and expertise will allow us to improve performance, develop options for growth and generate real value. BP Bunge Bioenergia will be well-placed to play a significant part in meeting Brazil’s growing demand for both biofuels and biopower.”
Following completion, the aim is for BP Bunge Bioenergia to generate significant operational and financial synergies, including through scale efficiencies and by applying best practices, optimised technologies and operational capabilities across all the assets of the new business.
The new business is expected to be headquartered in Sao Paulo. Mario Lindenhayn from BP will be Executive Chairman, Geovane Consul from Bunge, will be Chief Executive Officer (CEO). BP and Bunge will have equal representation on the Board of Directors.
In connection with the entry into the Business Contribution Agreement, the Company will classify the assets and liabilities to be transferred to the Joint Venture under the Business Contribution Agreement as held for sale in its condensed, consolidated financial statements in the quarter ending September 30, 2019. Accordingly, the Company will record those assets and liabilities at fair value, less estimated transaction costs, through the closing date of the transaction. As a result of the classification as held for sale, the Company expects to recognize an impairment charge, principally related to the recognition of cumulative currency translation effects, in the range of $1.5 billion to $1.7 billion, which charge will primarily be recorded in the quarter ending September 30, 2019. Other than estimated transaction costs of approximately $18 million to be included in the impairment charge, the Company does not expect to incur additional significant cash costs associated with the entry into the Joint Venture.
Pakistan customs seizes Indian sugar - Published on: 20.07.2019
Pakistan customs seizes Indian sugar
Pakistan Customs Directorate General of Afghan Transit has confiscated a massive number of Indian sugar consignment which was en route for Afghanistan. This action comes at a time when relation with India and Pakistan is souring due to various issues.
In a released statement, an official alleged that after doing confirmation through laboratory tests, sugar is found to be “unfit for human consumption”. So far, out of 258 containers, 172 containers, which is equivalent to 4,472 tonnes have been tested by labs.
Bangladesh, Sri Lanka, Somalia, Afghanistan and Iran are the major export destinations for India. As the country is suffering from surplus sugar, mills in India are exploring the way to export in other countries.
Nepal government lifts sugar import restriction; opportunity for India - Published on: 19.07.2019
Nepal government lifts sugar import restriction; opportunity for India
The Nepal government has lifted the sugar import restriction in the country. According to the Dinesh Bhattarai, spokesperson for the Ministry of Industry, Commerce and Supplies, “Government decided not to extend quantitative restriction on sugar import beyond the end of the fiscal year 2018-19.”
Earlier, the government continued ban of sugar import for the next three months, which was initially in place only till mid-April.
With the lifting of import restriction, it has paved the way for sugar mills in India to encash this opportunity and explore for sugar export in Nepal. India is already struggling with the surplus sugar, and export in Nepal can help in to reduce the sugar glut in India.
The ban was imposed after the domestic sugar industry claimed that they cannot compete with sugar from other countries. The excessive supply of cheaper foreign sugar in the domestic market had lowered the demand for comparatively costly Nepali sugar.
In March 2018, the govt had raised import duty on sugar to 30 per cent from 15 per cent to promote domestic sugar. However, even after that local sugar mills were struggling, following which Nepal Government banned the import of sugar from India and Pakistan in October 2018 to assure a market for domestic produce.
Raw sugar drops to seven-week low amid expectation of hefty exports from India - Published on: 19.07.2019
Raw sugar drops to seven-week low amid expectation of hefty exports from India
After the reports emerged that India is likely to continue sugar export subsidies, its impact can be seen across the world sugar industry. Raw sugar futures on ICE plunged to a seven-week low on July 18, with the expectation of hefty exports from India and weak demand in Asia aiding to keep the market on the defensive.
October raw sugar was low 0.06 cents, or 0.5 per cent, at 11.73 cents per lb at 1332 GMT after sinking to a seven-week low of 11.71 cents.
According to the reports, dealers believe that the likelihood of India could export up to 8 MMT of sugar impacted the market.
Indian stock market also witnessed the impact of the same. Sugar stocks on July 16 climbed higher. Uttam Sugar Mills rose 15 per cent to Rs 137, Triveni Engineering gained 2.98 per cent, while Balrampur Chini Mills surged 3.81 per cent. Mawana Sugars rallied 4.76 per cent, and Avadh Sugar witnessed a hike of 4.54 per cent.
India’s sugar subsidies have become a talking point in the world sugar industry with many countries approached WTO against it. Recently, Australia, Brazil, and Guatemala requested WTO to form a panel to resolve their dispute over Indian sugar subsidies. They claim that India’s sugar subsidies are inconsistent with global trade rules and distorting the sugar market.
Global sugar prices hit their lowest in 10 years in late 2018 amid heavy world oversupply and have only stabilised at depressed levels in 2019.
India permits sugar export to America - Published on: 18.07.2019
India permits sugar export to America
Sugar mills in India are saddled with surplus sugar stocks and exploring for ways to diminish this grim situation. To reduce the glut, experts believe export is the only viable option. Considering the current scenario, the government under tariff rate quota (TRQ) allowed the export of 1,239 tonnes of raw sugar to America. It will enable the shipments to enjoy relatively low tariff.
TRQ allows a low tariff rate to be imposed on imports of a given product within a specified quantity and requires a high tariff rate to be imposed on imports exceeding that quantity.
Directorate General of Foreign Trade (DGFT) in a released public notice said, “Additional quantity of 1,239 tonnes of raw cane sugar to be exported to USA under TRQ up to September 30, 2019, has been notified. Under a preferential quota arrangement, India can export duty-free sugar to America up to 10,000 tonnes annually.
Recently, various countries have cornered India by knocking the door at WTO over export subsidies. They allege country’s subsidies are inconsistent with global trade rules and distorting the sugar market.
The Indian government is also mulling over framing new sugar export policy to reduce surplus and address the concerns of the beleaguered sugar industry.
Rival countries declare sugar war against India - Published on: 18.07.2019
Rival countries declare sugar war against India
Rival countries have declared sugar war against India. With each passing days, the new country is rushing to WTO claiming that Indian sugar subsidies have hampered their countries sugar industry.
After Australia and Brazil urged WTO to form a panel to resolve their dispute over Indian sugar subsidies, now it is Central American country Guatemala sought the same.
As Indian sugar Industry is suffering from various difficulties from last two to three years, and to bring the sector out of the crisis, the government had introduced various measures like soft loan scheme, hike in MSP of sugar, scrapping of export duty, 100 per cent rise in import duty, and others.
In the month of February 2019, Guatemala, along with other countries, knocked WTO’s door alleging India’s sugar subsidies are inconsistent with global trade rules and distorting the sugar market.
As the WTO norms say that first dispute needs to be resolved through the consultation process and if it fails, then the panel can be set up. All the rival countries failed to reach a mutually agreed solution through consultation, following which they asked WTO to form a panel to review the matter.
Even if WTO’s panel give a decision against India, then it can approach the appellate body, whose decision would be final and binding on all.
According to the reports, even after Brazil, Australia, Guatemala lodged complained at WTO regarding Indian sugar subsidies, India is likely to continue sugar export subsidies, but it will modify how it provides them.
Despite sugar dispute, India and Brazil to come together for Ethanol - Published on: 17.07.2019
Despite sugar dispute, India and Brazil to come together for Ethanol
As Sugar Industry is struggling with surplus sugar stocks, the government is stressing on ethanol production to strengthen the financial condition of sugar mills. It is expected that in the coming days, India will produce more ethanol in order to generate good revenue. Eyeing this, Brazil and India may enter in an agreement to boost the production and trade of ethanol.
According to the reports, both the leading sugar-producing countries are expected to sign the memorandum of understanding on production and trade of ethanol when they will meet in Brasilia this year in November.
Prime Minister Narendra Modi will make an official visit to Brazilian President Jair Bolsonaro in November, where both the countries will try to boost trade ties.
To tap the Ethanol market in India, Brazil will leave no stone unturned. The Central Government has the vision to achieve 20 per cent ethanol blending with petrol by the next decade. And to achieve the same, India will take the assistance of Brazil.
UDOP, a Brazilian association of sugar and ethanol producers, said the suggestion to discuss a partnership on ethanol came from the Indian government. As per the UDOP, “Brazil government plans to help India to boost ethanol production and open the Indian market for the biofuel, helping to expand the global use of ethanol.”
At one side India and Brazil are mulling to enter in positive relations, whereas on the other hand, Brazil dragged India to WTO over Indian sugar subsidies alleging that it is inconsistent with global trade rules and distorting the sugar market.
Speaking about the worldwide Ethanol production scenario, the United States and Brazil are the key players.
Union Minister Union Gadkari had also advocated for the Ethanol production in India. He said, “In the near future, the use of ethanol would increase, and it will definitely benefit the farmers and sugar mills.”
In India, many companies are showing interest to encash the ethanol. Recently, TVS Motor Company launched India’s first ethanol motorcycle, which will increase demand for ethanol in India.
Sugar dispute: India likely to block rival countries request at WTO - Nandita Pai Published on: 15.07.2019
Sugar dispute: India likely to block rival countries request at WTO
New Delhi: Controversy over Indian sugar subsidies is refusing to die down. In the latest development, it has emerged that India is likely to block the request for a panel at the World Trade Organization as requested by Brazil and Australia to seek respite.
Brazil and Australia’s request will be taken during WTO’s meeting scheduled for July 22.
According to the reports, “India is likely to block the request for a panel as it believes that it has not violated multilateral rules.”
The Indian sugar industry is suffering from various hurdles from last two to three years, and to bring the sector out of the crisis, the government had introduced various measures like soft loan scheme, hike in minimum selling price, scrapping of export duty, 100 per cent rise in import duty, and others.
Various rival countries allege that India’s sugar subsidies are inconsistent with global trade rules and distorting the sugar market. Also, they claim it aids in building a global sugar surplus, which is ultimately affecting the farmers and millers of their respective countries.
Apart from Brazil and Australia, Guatemala also had knocked the door of WTO stating Indian sugar subsidies is harming its sugar Industry.
As per reports, the government is mulling over framing new sugar export policy to reduce surplus and address the concerns of the beleaguered sugar industry. And by without infringing WTO rules, India can tweak its sugar export subsidies.
Despite sugar dispute, Australia says relationship with India remains healthy - Nandita Pai Published on: 13.07.2019
Despite sugar dispute, Australia says relationship with India remains healthy
Following the Indian sugar subsidies, many countries knocked the World Trade Organisation's (WTO) door to get respite. Recently, Brazil, along with Australia, asked WTO to form a panel to resolve their dispute over Indian sugar subsidies. But even after that, Australia feels its relationship with India will remain healthy.
In a released statement, Trade Minister Simon Birmingham said, "Australia's relationship with India is strong, and it shows how valuable the trading system is that even close partners with good relations can utilise WTO processes to address trade disputes."
Various countries allege that India’s sugar subsidies are inconsistent with global trade rules and distorting the sugar market. Also, they claim it also aids in building global surplus sugar, which is ultimately affecting the farmers and millers of their respective countries.
According to the reports, Brazil and Australia's request will be taken during WTO’s meeting scheduled for July 22.
Indian sugar Industry is suffering from various hurdles from last two to three years, and to bring the sector out of the crisis, the government had introduced various measures like soft loan scheme, hike in minimum selling price, scrapping of export duty, 100 per cent rise in import duty, and others.
Bunge in talks to join Brazil Sugar-Ethanol Assets with one of the oil and gas super-majors of the world - Nandita Pai Published on: 12.07.2019
Bunge in talks to join Brazil Sugar-Ethanol Assets with one of the oil and gas super-majors of the world
American agribusiness and food company Bunge Limited is in conversation with British multinational oil and gas company BP plc to form a joint venture in sugar and ethanol.
As per leading media reports, the companies are in talks to integrate operations in Brazil, the world’s largest producing country of both sugar cane and sugar-based ethanol. It is also said that both the companies are currently valuing their assets in sugar and ethanol assets to reach on the decision of each company’s stake for which Brazilian bank Itau Unibanco Holding SA has been hired by as an advisor by Bunge. Spokesmen for Bunge and BP denied to comment.
So far no decision or agreement has been made and chances also stand to the talks failing. Joining hands for this venture would enable Bunge to realign the company from a struggling business similar to when Royal Dutch Shell Plc and Brazilian sugar and ethanol producer Cosan Ltd. created Raizen in 2010.
Bunge recently sold its sugar trading business to Singapore-based trader Wilmar International and has thereafter been traversing to find options for its Brazilian milling business. BP started producing ethanol in Brazil over a decade ago and currently its three mills have capacity to crush 10 million metric tons of cane a year whereas Bunge has eight mills with capacity to process 22 million tons.
Sugar in Kenya gets costlier - Nandita Pai Published on: 11.07.2019
Sugar in Kenya gets costlier
Following the hike in sugar prices, Kenyans will have to pay more for commodity.
According to the reports, at the most retail outlets, sugar is being sold at more than sh240 for a 2kg packet.
KNA during its spot check in Kisumu found that most supermarkets were selling sugar at Sh120 for per kg, whereas branded sugar was being sold at plus Sh10 higher.
One of the trader while talking to a leading news website said, “I used to buy 50kg Kibos and Sukari brands at Sh3900, but it has increased to Sh4800 over the last month. The added cost must be transferred to the consumer.”
Following a decrease in sugar production and imports, prices of the sweetener have surged in Kenya.
The decline in sugar production was attributed to less production by Chemelil, Nzoia, and other sugar mills. Also, shut down of Mumias and Kwale Sugar Company deteriorate the condition. These factors have resulted in a 12 per cent fall in sugar output.
Indonesia to cut tariffs on sugar from India - Published on: 10.07.2019
Indonesia to cut tariffs on sugar from India
New Delhi: The Indian government in a released statement on July 9 said, “Indonesia will cut tariffs on sugar from India as part of efforts to help facilitate imports of the sweetener.”
According to the reports, earlier Indonesia had asked India to cut its tariff on refined palm oil to 45 per cent, matching the levy faced by rival producer Malaysia, and offered market access for Indian sugar in exchange.
Currently, Indonesia, the world’s second-largest sugar importer, imports raw sugar from Thailand, Australia, and Brazil. India is the world’s biggest importer of palm oil.
China: Customs seize smuggled sugar - Nandita Pai Published on: 08.07.2019
China: Customs seize smuggled sugar
By confiscating over 500 tonnes of sugar and arresting seven alleged suspects, Customs in Suzhou, China has unearthed a sugar-smuggling case.
According to the reports, the customs officials also seized ship during their action and collected evidence which they will use during further investigation.
Customs officials in Suzhou have been actively working on eradication of petroleum products and sugar smuggling.
Earlier too, Shanghai customs cracked down two sugar smuggling gangs and caught more than 40 suspects.
Traders can appeal to postpone sugar tax - Nandita Pai Published on: 09.07.2019
Traders can appeal to postpone sugar tax
Implementation of Sugar tax created controversy in sugar industry in Malaysia. Now following chaos, Deputy Entrepreneur Development Minister Mohd Hatta Md Ramli said, “Small businesses and traders affected by the tax on sweetened drinks, can file a postponement appeal to the relevant authorities.”
He said that every appeal must have reasonable grounds for proper consideration.
During a press conference, Ramli said, “I hope the Domestic Trade and Consumer Affairs Ministry will settle the issue when it receives the appeals from the traders.”
The new sugar tax has come into effect on July 1.
According to the reports, an excise duty of 40 sen per litre will be imposed on sweetened beverages containing more than 5g of sugar or sugar-based sweetener per 100ml.
It was alleged that implementation of the sugar tax has caused traders to suspend their businesses as they claim the tax is too high.
Brazil: Less cane allocation for sugar production - Published on: 31.05.2019
Brazil: Less cane allocation for sugar production
Sugar mills in Brazil likely to allocate low sugarcane for sugar production in the 2019/20 crop due to low sugar prices. It is expected that they will divert more sugarcane towards ethanol output because of strong local demand for the biofuel.
Canaplan consultancy’s chief analyst Caio Carvalho while speaking at a sugar conference in Piracicaba said that he had revised lower his April view of a 38 per cent cane allocation to sugar to a range of between 34 per cent and 34.5 per cent.
“Considering what we have seen in the fields so far, we changed our view for the production mix. Back in April, we expected mills would produce more sugar in the new season”, Caio Carvalho further added.
Sugar production in the country is also likely to fall from expected production as mills are likely to allocate less cane for sugar.
The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased.
This strategy of switchover makes Brazilian mills key swing factor in sugar markets.
Mauritius may witness slightly hike in sugar output - Published on: 01.06.2019
Mauritius may witness slightly hike in sugar output
The sugar production in Mauritius may witness a hike of 0.4 per cent this year, the Indian Ocean island’s Chamber of Agriculture said on Friday. It may go up to 325,000 tonnes due to good weather.
Sugar contributes about 0.4 per cent of Mauritius’ $14 billion gross domestic product. Once the sugar was a pillar of the country’s economy.
The chamber released a statement, where it stated, “Overall climatic conditions in terms of rainfall and sunshine helped to the growth of the cane between the months of October and April”.
In the year 2018, Mauritius had produced 323,406 tonnes of sugar.
Brazil’s Santa Adelia to close one of its sugar mills to cut costs - Published on: 29.05.2019
Brazil’s Santa Adelia to close one of its sugar mills to cut costs
Sugar prices in Brazil near the lowest levels in a decade and also affected the sugar mills, which forced millers to either close or lie dormant to minimize costs.
In order to cut costs and boost efficiency, Brazil sugar and ethanol producer Usina Santa Adelia will close one of its three mills in Sao Paulo state.
The company said it would conclude operations after next year’s crop at the Pioneiros mill in the municipality of Sud Mennucci, northwest Sao Paulo state.
The company released a statement, where it said that cane crushing volume will be maintained, but only in one plant, leading to significant scale gains and simpler logistics.
Sugar mills in the country scrapped plans to boost sugar production this year, reverting to a heavy focus on ethanol as it will give them more profits.
Confusion over sugar shortage in Zimbabwe - Published on: 03.06.2019
Confusion over sugar shortage in Zimbabwe
Row over sugar crisis is escalated in Zimbabwe. Now, The Zimbabwe Sugar Association (ZSA) has come to rescue and urged the members of the public not to hoard sugar because there are enough sweetener stocks to meet local demands in the country.
ZSA made the announcement following panic-buying of the commodity by consumers across the country over fears of a looming shortage.
ZSA chairperson, Muchuadeyi Masunda, said “To meet national requirements, the country has enough sugar stocks. We urge all retailers and wholesalers to continue behaving responsibly. We reassure to our customers and stakeholders that the Zimbabwe sugar industry has sufficient sugar stocks to meet both industrial and household grades of sugar to the next season.”
“We request players in the sugar industry to act responsibly as there is no sugar scarcity in the country”, he further added.
Ethiopia wants to buy 100000 tonnes of white sugar - Published on: 04.06.2019
Ethiopia wants to buy 100000 tonnes of white sugar
European traders said on Tuesday that the Ethiopian government company has issued an international tender to buy up to 100,000 tonnes of white sugar. The last date for the tender is said to be July 5.
They sought the delivery of sugar in September, October and November.
Previously, in the month of April, The Ministry of Finance of Ethiopia and Ethiopian Sugar Corporation invited buyers to express their intent to purchase one or all of the 13 sugar factories the government decided to privatize.
Ukraine’s sugar export increases by 30 per cent in May - Published on: 12.06.2019
Ukraine’s sugar export increases by 30 per cent in May
Ukrainian producers have exported more than 40,000 tonnes of sugar in May 2019, up 30 per cent compared with April.
According to National Association of Sugar Producers of Ukraine, “Ukrainian producers exported 41,300 tonnes of sugar in the month of the May in the current marketing year, which is higher than 30 per cent compared with the April.”
The leading importer of Ukrainian sugar in May was Azerbaijan, and also significant volumes were exported to Turkey and Tajikistan.
During 2018-2019 season, 378,200 tonnes of sugar were exported from September to May, comparatively 13 per cent low with the same period last year.
According to reports, As of year-end 2018, Ukraine exported sugar to the tune of 217 million dollars.
Vietnam: Sugar prices likely to hike due to lack of supply - Published on: 19.06.2019
Vietnam: Sugar prices likely to hike due to lack of supply
Experts at the fourth conference of the ASEAN Sugar Alliance (ASA) in Ho Chi Minh City forecast that sugar prices in Vietnam are likely to hike due to the scarcity of 2.5 million tonnes of sugar during the 2019 – 2020 season.
Due to global climate change, governments of Southeast Asian nations are working to keep the sugarcane industry competitive and meet consumers’ demand, said Chairman of the Thanh Thanh Cong JSC Dang Van Thanh.
During the two-day event, which concluded on June 18, participants discussed issues regarding market, trade, and seek strategic solutions to the future of the regional sugar industry.
ASA, which was founded in the year 2016, targets to increase the strength of the sugar industry and to find solution to meet sugar demand in the region.
Food and beverage manufacturers in Malaysia import sugar from Thailand amidst uproar - Published on: 22.06.2019
Food and beverage manufacturers in Malaysia import sugar from Thailand amidst uproar
Sugar industry in Malaysia is witnessing hue and cry after the Ministry of Domestic Trade and Consumer Affairs has approved eight permits to food and beverage (F&B) manufacturers to import sugar from other countries. Now, finally, amidst the uproar, F&B manufacturers in Sarawak started getting sugar supply from Thailand at RM1.70 per kg.
MSM Malaysia Holdings Bhd and Central Sugar Refinery Sdn Bhd had alleged that approval of the import permits was made without fully understanding the circumstances of the industry. Also, there was a demand to reconsider the recent decision, which was quashed stating competition in the sugar industry will do more good for the country, business sector, and consumers at large.
Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen in a released statement said the import cost is inclusive of transport charges.
He claimed, so far, the two sugar refiners, MSM Malaysia Holdings Bhd (MSM) and Central Sugar Refinery Sdn Bhd (CSR), have enjoyed the monopolistic control over the sale and supply of sugar in the domestic market, and now the import permits would help to diminish the cost of production at the factories.
Jen, while addressing the press conference, had earlier stated, “Despite the low international sugar price, the F&B manufacturers have had to pay about RM2.60 to RM2.70 per kg from the local sugar refineries. Whereas at present the international sugar price is in the range of RM1.40 per kg for raw sugar, while for refined sugar, it is RM1.80 per kg”.
Indonesia places new tariff for Indian raw sugar imports - Published on: 27.06.2019
Indonesia places new tariff for Indian raw sugar imports
India is saddled with the surplus sugar stocks and looking for a new market to liquidate the domestic glut. Now, according to a finance ministry regulation published on June 27, Indonesia changes import tax for Indian raw sugar to 5 per cent from previously a nominal duty of 550 rupiah (Rs 2.69 ) per kg.
According to the reports, earlier Indonesia has asked India to cut its tariff on refined palm oil to 45 per cent, matching the levy faced by rival producer Malaysia, and offered market access for Indian sugar in exchange.
Currently, Indonesia, the world’s second-largest sugar importer, imports raw sugar from Thailand, Australia, and Brazil.
It is presumed that Indonesia being closer in the distance to India, is expected to reduce cost of imports for the country.
Sugar mills in India have been facing issues with depressing sugar prices, surplus stocks, and piling cane arrears. Boost in export will help to reduce the surplus up to some extent.
Nestle to reduce sugar in its products - Prakash Jha Published on: 21.06.2019
Nestle to reduce sugar in its products
After big companies like Coca Cola, Cadbury decided to cut sugar content in their production, now taking a cue from them, Nestlé has just announced its formal commitment to reduce sugar in products.
According to reports, Nestlé has taken this decision in a bid to promote health and wellness.
In a released statement, Nestlé said it has lower 32 per cent of table sugar in its products, especially on children’s foods, between 2000 and 2013.
Head of Corporate Communications Nestle Trinidad Limited Denise D’Abadie told to one of the leading news websites, “Nestlé’ bases its nutritional criteria on scientific and public health recommendations from the WHO, and other top international and national authorities. Every one of Nestlé’s products must meet Nestlé’s global standards. The company does not do options with additional sweetener,”.