Indian mills signed contracts to export 550,000 tonnes of sugar in recent days, as surging global prices and a weak rupee made overseas sales lucrative, according to Reuters.
India is the world’s second-biggest sugar producer and its exports could check the rally in global prices, which have have risen due lower production in Brazil and a sharp increase in oil prices.
Higher exports would also help India lower its sugar stocks.The shipments will also help India reduce its stockpile and support the local prices of the sweetener, crucial in ensuring millions of cane farmers get government-mandated prices.
Indian mills have so far signed contracts to export 6.4 million tonnes of sugar in 2021/22, mainly with Indonesia and Bangladesh, Reuters quoted traders as saying, adding that nearly 5 million tonnes have already been shipped.
India had exported a record 7.2 million tonnes of sugar in the previous season.