New Delhi
\nIndia is set to allow exports of 1 million metric tonnes of sugar during the current season, government and industry sources said, to help mills export surplus stocks from the world\u2019s second biggest producer of the sweetener and help prop up local prices.
\nThe permission to let mills sell 1m tonnes of sugar on the world market could put further downward pressure on global sugar prices SBc1, LSUc1.
\nThe government is expected to soon issue an official order allowing exports of 1m tonnes of sugar, said the sources who did not wish to be named as they were not authorised to speak to the media.
\nThe decision to allow exports, which had been speculated for the past few weeks, comes as a surprise to a section of traders, as this year\u2019s production is expected to fall below consumption for the first time in eight years.
\nMaharashtra, Karnataka, and Uttar Pradesh account for more than 80 per cent of the country\u2019s total sugar production, with lower cane yields in these states prompting trade houses to reduce their output estimates for the current 2024-25 season.
\nThe production could fall to around 27m tonnes from last year\u2019s 32m tonnes and below annual consumption of more than 29m tonnes, according to leading trade houses.
\nIndia, whose sugar export markets include Indonesia, Bangladesh and the United Arab Emirates, was the world\u2019s No. 2 exporter during the five years to 2022-23, with volumes averaging 6.8m tonnes annually.
\nIndia did not allow exports in the 2023-24 marketing year.
\nThe Indian Sugar and Bio-energy Manufacturers Association, a producers\u2019 body, said the permission to export 1m tonnes of sugar would help sugar mills reeling from low local prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi India is set to allow exports of 1 million metric tonnes of sugar during the current season, government and industry sources said, to help mills export surplus stocks from the world\u2019s second biggest producer of the sweetener and help prop up local prices. The permission to let mills sell 1m tonnes of sugar […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-456519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n