S'pore sugar supply unlikely to be hit by India's export curb

Singapore consumers need not worry about sugar supplies despite India's decision on Tuesday to restrict sugar exports for the first time in six years to prevent a surge in domestic prices.

While India is the world's biggest sugar producer and the second biggest exporter behind Brazil, industry players told The Straits Times that Singapore imports minimally from the country.

Mr John Cheng, a director at sugar manufacturing business Cheng Yew Heng, said the company imports sugar from countries such as Thailand, Malaysia, South Korea and Australia. Imports from India make up less than 5 per cent.

Cheng Yew Heng is a major importer of sugar here and the country's oldest sugar manufacturer.

A spokesman for sugar importer Hiang Li Traders similarly said Singapore mainly sources its sugar from Thailand and Malaysia.

The spokesman said: "Sugar from India makes up a minimal amount of the local market."

She added that India regularly imposes sugar export limits towards the end of the year.

"India sugar is harvested once a year. Usually around September, it imposes export quotas... it is just happening a bit earlier this year. But overall, India still has a surplus, so it is not worrying to us. It is just a matter of time until its local market prices stabilise. Then it will go back to exporting regularly," the spokesman said.

A spokesman for the Singapore Food Agency (SFA) said the Republic imports sugar from more than 40 countries, including Australia, India, Malaysia and Thailand.

The SFA spokesman said: "Diversification has been one of our key strategies to ensure and secure a supply of safe food, especially in view of the current volatile global food security situation."

Sugar prices here have also rema-ined stable in the last few months, according to supermarkets. A FairPrice spokesman said it imports sugar from places including Thailand, South Africa, China and Malaysia to ensure daily essentials remain available and affordable.

But while Singapore has various options for the supply of sugar, prices might inevitably increase due to higher demand globally.

Mr Cheng said: "Other countries might look to alternative sources of sugar if they cannot buy from India, sources such as Thailand and Malaysia... So, that will push up prices overall. But it won't happen immediately."

He added: "No need to panic that there won't be enough sugar to go around. Importers here are making sure that they will have enough supply. There are many sources out there for sugar."