Indian mills expect to export 1.5 MT of sugar after selling 8.5 MT: Report

India has exported about 8.5 million tonnes of sugar since the start of the current season on October 1, and exporters are expected to contract another 1.5 million tonnes for overseas sales over the next five years. months, business and government sources said Thursday.

India, the world’s largest producer and consumer of sugar, on May 24 imposed restrictions on exports of the sweetener for the first time in six years by capping exports at 10 million tonnes.

The government has also asked exporters to apply for export permits, or authorization, for any overseas shipments between June 1 and October 31.

“Until the restriction on registering cargoes with us came into force on June 1, the factories were exporting around 8.5 million tonnes of sugar,” said a senior government official who did not wished to be named as he was not authorized to speak to the media.

Another government official, who also declined to be identified, confirmed the shipments.

Global prices are attractive and sugar mills are keen to take advantage of higher international rates, but are waiting for the government to issue export permits, traders said.

“Current world prices are attractive for exports and there is huge demand for Indian sugar,” said a Mumbai-based dealer with a global trading house. “India will easily export 10 million tonnes.”

“Cane crushing is almost complete and the mills have already sold most of their stocks of raw sugar, so in the coming months they will mainly export white sugar,” the trader said.

Cane crushing in India starts in October and starts to decrease in April.

Traders currently offer Indian raw sugar between $465 and $470 per ton free on board and white sugar between $480 and $485 per ton.

There is a strong demand for Indian sugar, especially from Iran, Indonesia, Bangladesh and the United Arab Emirates (UAE), said Rahil Shaikh, managing director of MEIR Commodities India, a trading.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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