Indian mills have contracts to export 600,000 metric tons of sugar in the 2024/25 marketing year ending in September, but are reluctant to sign further export deals as local prices have increased, five industry officials said.
The slower pace of shipments from India, the world’s second biggest sugar producer, will support global prices, which are trading near their lowest level in three years.
After halting exports last year to calm domestic prices, India in January allowed exports of 1 million tons of sugar during the current season to help mills to export surplus stocks.
But as domestic sugar prices strengthen and are expected to rise further because of lower production and anticipated summer season demand, a Mumbai-based dealer with a global trading firm said, exports had slowed this month after picking up last month.
All the sources declined to be named because they were not authorised to speak to the press.
But as domestic sugar prices strengthen and are expected to rise further because of lower production and anticipated summer season demand, a Mumbai-based dealer with a global trading firm said, exports had slowed this month after picking up last month.
All the sources declined to be named because they were not authorised to speak to the press.