Peaked sugar global market is expected to be pacified with the supply of sugar from India. Sugar production in India is projected to touch 25.5 million tons thanks to favorable monsoon rains.
The industry opined that the country could export three million tons of surplus sugar in the current marketing year.
With an expected sugar output of 25.5 million tons and the carryover stocks of 5.8 million will facilitate to ship around three million tons of surplus sugar this year, Indian Sugar Mills Association Director General Abinash Verma was quoted by Dow Jones Newswires.
The government has allowed domestic mills to export one million tons of sugar to fulfill an old obligation against tax free import of raw sugar.
The export of sugar would help to bring down the global prices, which doubled to 26.32 cents a pound after the supply was hit due to drought in the major producer Brazil.
India hadn't allowed sugar exports in the past two years because of a local shortage, but a likely bumper sugarcane crop in the marketing year that started October 1 will mean it won't have to rely on imports to satisfy demand, estimated at 23 million metric tons a year.
The industry's sugar production forecast for this year is higher than the government's initial estimate of 24.5 million tons.
Source: BlackseaGrain
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