MUMBAI/NEW DELHI, Jan 19 (Reuters): India is set to allow exports of 1 million tonnes of sugar during the current season, government and industry sources said, to help mills export surplus stocks from the world's second biggest producer of the sweetener and help prop up local prices.
The permission to let mills sell 1 million tonnes of sugar on the world market could put further downward pressure on global sugar prices.
The government is expected to soon issue an official order allowing exports of 1 million tons of sugar, said the sources who did not wish to be named as they were not authorised to speak to the media.
The 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's production is expected to fall below consumption for the first time in eight years.
Maharashtra, Karnataka, and Uttar Pradesh account for more than 80 per cent of the country's total sugar production, with lower cane yields in these states prompting trade houses to reduce their output estimates for the current 2024-25 season.
India to allow 1.0m tonnes of sugar exports this year
FE Team | Published: January 19, 2025 21:30:04
India to allow 1.0m tonnes of sugar exports this year
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