KUALA LUMPUR: MSM Malaysia Holdings Bhd has purchased 130,000 tonnes of raw sugar worth nearly RM200mil from India which is its requirement for the first quarter of 2020.
The refined sugar producer said it expected the arrival of three shipments between January and February.
Group CEO Datuk Khairil Anuar Aziz said over 900,000 tonnes of raw sugar have been imported in 2019 from various top producing countries, which include India.
“We will continue to import raw sugar from top producing countries such as India, Brazil, Thailand and others while ensuring the raw sugar cost consistency in the benchmark of NY#11 and deliberately select our raw sugar suppliers to ensure minimal compromise in quality for our end product, ” he said in a filing with Bursa Malaysia.
India is ranked among the world’s largest sugar producers alongside Brazil and Thailand.
India’s raw sugar production was reported to be slower for financial year 2019/2020 (FY19/20) due to drier weather.
However, for FY20/21, India’s production is expected to recover due to improving rainfall in Maharashtra.
While production in Brazil is forecast to be stable but millers are more attracted to produce ethanol due to attractive pricing.
In Thailand, production for FY19/20 has been lower due to poor rainfall in key planting areas.
Khairil Anuar said India provided added-value and advantages for MSM to ensure a sustainable supply of best quality raw sugar stock for all of its refineries and facilitating efficient raw-sugar procurement as part of cost-savings and operational improvement strategies.
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