The Indian sugar industry has urged the government to allow exports of 1 million metric tons of the sweetener as unseasonable rainfall in key cane-growing states leads to increased production and supplies.
The country is likely to produce 32 million tons of sugar in the current marketing year ending Sept. 30 against local demand of 28.5 million tons, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said on Tuesday.
Higher production is expected to increase stocks in the country to 9.1 million tons by the end of the current marketing year, up from the last year’s 5.6 million tons,creating space to allow exports of 1 million tons, according to an association statement.
The world’s second-largest sugar producer has not allowed exports in the current season to keep a lid on local prices ahead of India’s parliamentary election, which is being held over nearly seven weeks from April 19th.
India allowed mills to export 6.1 million tonnes of sugar during the 2022/23 season, after letting them sell a record 11.1 million tonnes in 2021/22.
Sugar mills in the country have produced 30.2 million tons of sugar in the first six months of the 2023/24 season, which is slightly more than the 30 million tons produced a year ago, the ISMA said.