India to export more sugar to control rising global prices |
According to a government circular, India has reallocated unused sugar exports quotas of more than 600,000 tonnes among mills after some producers failed to ship due to a drop in output. The redistribution of quotas could lift exports from the world`s biggest sugar producer in coming months and may weigh on global prices that hit a 2 and half year high earlier this month. A circular of ministry of consumer affairs, food and public distribution stated that export quotas of 611,797 tonnes have been redistributed after reviewing exports performance of the mills. Repeated bumper cane harvests and record sugar production have ensured that Indian sugar prices remained low, making it hard for mills to pay money owed to farmers. To reduce the debt and pare rising inventories, New Delhi has approved a subsidy of 145 dollars a tonne for exports of 6 million tonnes in the 2019-20 season. But many sugar mills, especially from the western state of Maharashtra, failed to export sugar due to a drop in production as cane plantations were hit by drought and floods. India could export more than 5 million tonnes of sugar in the 2019-20 marketing year ending on the 30th of September.
|
|
|
|