Indian mills sign contracts to export 4.3 million tonnes sugar
With the higher global prices to a four-year high and an export subsidy making overseas sales lucrative, Indian mills have contracted 4.3 million tonness sugar so far in the 2020-21 season ending on Sept. 30 for export. According to the sources, increased export from the country could limit the gains in global prices that have been buoyed by lower production in Thailand. As per the association, this is a great achievement especially because these contracts have been signed in just 2-1-2 months, since the date the export quotas were allocated by the government on 31st December, 2020 and out of the total contracts, nearly 2.2 million tonness of sugar has already been shipped. The exports are supposed to help India in reducing stockpiles and support local prices of the sweetener. Centre has has approved a subsidy of Rs 5,833 ($80.38) a tonnes for exports of 6 million tonness in the current year. India has been selling sugar mainly to Indonesia, Dubai, Afghanistan, Sri Lanka and African countries. According to the association, Indian mills have produced 25.87 million tonness of sugar in the current marketing year, nearly 20 percent more than a year ago as output jumped in Maharashtra and Karnataka. However, this year many mills are closing operations early due to limited supplies of sugar cane, the trade body said. In the current marketing year, 502 sugar mills have started operations, but 171 mills stopped crushing by mid-March end.