Tranportation woes delay Indian sugar exports

By Abhishek Shanker & Rajendra Jadhav

MUMBAI (Reuters) -India's sugar exports are getting delayed due to a shortage of trucks and rail wagons for transportation to ports, resulting from a surge in exports of various commodities, industry officials said.

There is robust demand for agricultural commodities, especially for cotton, soymeal and sugar, from overseas markets, and exports are set to rise in the crop year to September 2008.

India aims to export around 3 million tonnes of sugar in the crop year to September 2008, from 1.7 million tonnes a year ago.

"The only problem we are encountering is that arrival of sugar from the hinterland is not in the order. Though we have the ship alongside the berth, the cargo doesn't come from the hinterland," a senior official at Mumbai port said.

Sugar factories in Maharashtra, the biggest producing state, are exporting mostly in the raw form through Mumbai and the Kandla port in Gujarat, which have adequate facilities.

"We have to export about 20,000 tonnes of sugar in next 15 days but we are facing severe shortage of trucks which would carry sugar to the port." Kantilal V. Shah, chairman and managing director, Gill & Co Pvt Ltd, said.

Gill & Co aims to export about 320,000 tonnes of sugar in the current season, from 30,000 tonnes a year before.

Sugar factories are unable to get trucks and rail wagons which is delaying shipping process, said Balasaheb Patil, president of Maharashtra Cooperative Sugar Factories Federation.