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Indian mills have exported all 6.1 million tonnes of sugar, legally taking advantage of persistently high prices on the international market and strong demand, according to industry insiders who spoke to Reuters.
However, due to an anticipated decline in production, the second-largest producer of sweeteners, India, is unlikely to permit extra exports in the current marketing year ending on September 30. As a result, top producer Brazil might be able to sell more sugar on the international market and drive up prices globally.
“ The mills have shipped the entire allocated quantity, and nothing has left since the global prices became attractive, " Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd., told Reuters.
In contrast to the local pricing of 36,500 rupees, dealers claim that mills collected more than 50,000 rupees ($604.6) per tonne from overseas sales. The remaining shipments accelerated due to a rumor that India may block exports earlier this month, claimed.
In the previous 2021–2022 season, the nation exported 11 million tonnes of sugar. However, New Delhi only permitted exports of 6.1 million tonnes in the current year because of an anticipated decline in production.
From a record 35.8 million tonnes the previous season, production might drop to 32.8 million tonnes this year. According to a senior industry executive who declined to identify, the decrease in the making has closed the window for extra exports that mills pursued previously. "We are no longer pleading with the administration to permit more exports during this season. We are aware that it is not doable," he stated.
India majorly sells sugar to the United Arab Emirates, Indonesia, Bangladesh, Malaysia, Sudan, and Somalia. Brazil has a large surplus for exports. Asian and African consumers have moved from India, according to a Mumbai-based dealer with a worldwide trade business.
— Harshita Kumar
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