Indian mills have contracted to export 600,000 metric tons of sugar for the 2024/25 marketing year but are hesitant to sign more deals due to rising local prices, according to industry officials.
India, the world’s second-largest sugar producer, has slowed exports, supporting global prices near a three-year low.
After banning exports last year, the government allowed 1 million tons for export this season, but mills remain cautious as domestic prices rise.
Sugar production is expected to fall to 25.8 million tons, while consumption stays at 29 million tons, driving up demand. So far, 250,000 tons of the 600,000-ton contracts signed since January have been shipped.
Indian sugar prices are $20 per ton higher than London futures, leading buyers to opt for Brazilian sugar at the same cost. However, experts believe mills can still export the full 1 million-ton quota before the September deadline if prices improve.
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