Sugar prices hit three-year lows as India allows exports

India's decision to permit exports of 1 million tonnes of sugar in the current season has led to a significant drop in global sugar prices, marking the lowest level in over three years. This unexpected move, aimed at supporting local prices and sugar mills, comes despite anticipated production shortfalls and concerns over Thailand's potential increase in sugar availability. The decision has exacerbated downward pressure on sugar prices, with white sugar futures experiencing a 5% loss so far this year. Meanwhile, cocoa in London and robusta coffee prices have seen slight increases.

LONDON (Reuters) - Sugar prices hit their lowest level in more than three years on Monday on news that India, the world’s second-largest producer of the sweetener, will allow exports of 1 million tonnes of sugar in the current season, which runs until the end of September. Reuters reported on Sunday that New Delhi was prepared to allow exports in order to support sugar mills and support local prices, which have been under pressure in recent months. While speculation about the export permit had been rife for weeks, the decision surprised some traders given that production this season is expected to fall short of consumption for the first time in eight years. “The news is likely to keep pressure on global prices,” said Warren Patterson, head of commodities strategy at ING. White sugar futures on the ICE exchange, used as a global benchmark, hit $470.20 a tonne earlier, the lowest since September 2021. They later settled down 0.9% at $474.30, bringing their losses for the year to ...