India is likely to export around 500,000 tonnes or just a quarter of the volume mandated by the government for overseas sales in the 2017-18 season amid higher prices at home, industry officials told Reuters.
Lower shipments from the world’s second-biggest sugar producer could support global prices, but would increase India’s opening stocks for the next marketing season when output is expected to surge to a record.
‘Not interested’
“Mills are not interested in exports as they are getting higher prices in the local market,” said Abinash Verma, director general of the Indian Sugar Mills Association, a producers’ body.
Sugar is being sold at around ₹31,000 per tonne in India, while exporters are getting less than ₹21,000 per tonne, dealers said.
Local sugar prices have jumped 20% in a month amid government measures to help loss-making mills and cane growers who make up a key voting bloc.
