India to allow export of 1 million tonnes of sugar this year

India plans to permit the export of 1 million metric tonnes of sugar during the current season to help mills offload surplus stocks and support local prices. This move could further decrease global sugar prices. The official order for this export is expected to be issued soon. This decision is surprising as India's production is predicted to be lower than consumption for the first time in eight years. However, the Indian Sugar and Bioenergy Manufacturers Association believes that this will be beneficial for the sugar industry, given the anticipated strong production next year.

MUMBAI/NEW DELHI, Jan 19 (Reuters) - 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 offload surplus stocks from the world’s second-largest producer of the sweetener and help support local prices. Allowing mills to sell 1 million tonnes of sugar on the world market could put further downward pressure on global sugar prices. The government is expected to issue an official order soon allowing the export of 1 million tonnes of sugar, said the sources, who declined to be identified as they were not authorised to speak to the media. The decision to allow exports, which had been rumored in recent weeks, came as a surprise to some traders as production this year is expected to fall short of consumption for the first time in eight years. Maharashtra, Karnataka and Uttar Pradesh account for over 80% of the country’s total sugar output, with lower cane yields in these states prompting trading ...