NEW DELHI (Reuters) - Half of the 4 million tonnes of raw sugar India has contracted to buy to meet a shortfall in supply have arrived, shipping sources said late on Monday, while another 100,000 tonnes are on the way to the world's largest consumer.
Strong demand in India pushed raw sugar futures through key resistance at 24 cents per pound on Monday, their highest price level in nearly 30 years. New York's October raw sugar contract hit a session peak at 24.48 cents, the highest level since February 1981.
"About 2 million tonnes of the raw sugar have already arrived. Most of them have been take out of the port," said a Delhi-based shipping broker, adding that the sweetener is of Brazilian origin.
"About 100,000 tonnes of raw sugar from Brazil are on the way to India right now. They will arrive one month and a half later," the broker said ahead of a sugar conference in the Indian capital.
Another broker said freight rates to India from Brazil have been steady since early this year at $45 to $50, but lower than $150 a tonne seen more than a year ago.
The sugar market has been rallying since late June as the worst monsoon season in some 40 years has forced India to import large quantities of the sweetener ahead of its annual festival season.
The government of India said that 278 districts in 11 states have been affected by drought as monsoon rains were 24 percent deficient between June 1 and Aug. 27.
India's cane harvest contracted last year because farmers switched to competing crops such as wheat and rice, for which the government paid lucrative rates directly to farmers.
A Reuters poll on Aug. 5, showed India would import 4.5 million tonnes in the new season.
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