Strong Demand and High Prices Drive Indian Sugar Exports
Indian mills have successfully shipped out the entire 6.1 million tonnes of sugar allotted for exports, taking advantage of the multi-year high prices in the global market and robust demand. Industry officials have confirmed that the allocated quantity has been dispatched, and no shipments have been made since global prices became attractive.
Unlikely Additional Exports in the Current Marketing Year
Despite being the world's second-largest sugar producer, India is unlikely to permit additional exports in the current marketing year, which ends on September 30. This decision stems from an anticipated decline in production. The absence of further exports may raise global prices, providing an opportunity for top producer Brazil to increase its sugar sales in the world market.
Premium Prices in Overseas Sales Drive Indian Exports
Indian Mills Profit from International Sales
Indian mills are reaping the rewards of overseas sales, with prices exceeding 50,000 rupees per tonne compared to the local price of 36,500 rupees. The allure of these premium prices has accelerated the remaining shipments following a rumor earlier this month that India might ban exports.
Reduced Production Curtails Additional Export Opportunities
Production Decline Eliminates Prospects for Further Exports
With a projected production decrease from a record 35.8 million tonnes in the previous season to 32.8 million tonnes in the current year, the window for additional exports has closed. Mills, previously eager for extended export allowances, have now recognized the impracticality of such a request given the circumstances.
Shifting Buyer Preferences Favor Brazil over India
Brazil Gains Market Share as Asian and African Buyers Turn to Surplus
Indian exports to Asian and African buyers have witnessed a shift toward Brazil due to the country's abundant export surplus. With ample supply availability, Brazil has become the preferred source for sugar among these regions, posing a challenge for India. Market experts suggest that Asian and African buyers have redirected their attention to Brazil in search of steady and reliable sugar imports.
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