Air Freight News

India to allow more sugar exports to avoid contract defaults

India, the world’s second-biggest sugar producer, will permit millers to export an additional 1.2 million tons in the year ending in September, Food Secretary Sudhanshu Pandey said on Friday.

That’s on top of the current export quota of 10 million tons, which the government set in May to curb overseas sales and protect food supplies. With inventories now appearing enough to satisfy local consumption, growers had asked for the limit to be raised to prevent defaults on committed contracts.

Sugar shipments are expected to reach 11.2 million tons in 2021-22, Pandey told reporters in New Delhi, adding that an official notification is expected later Friday. Additional exports from India may exert further pressure on global prices, which have sunk about 13% from this year’s peak in early April.

Preliminary reports indicate the sugar-cane area in top growers Uttar Pradesh and Maharashtra is higher for the crop to be harvested in the season starting in October, suggesting supplies are adequate going into next year, according to Aditya Jhunjhunwala, president of the Indian Sugar Mills Association.

Even after exporting about an additional 1 million tons, the country will have more than 6 million tons in closing stockpiles on Sept. 30, enough to meet local demand before cane crushing starts, Jhunjhunwala said last month.

India was the top sugar exporter after Brazil last year and counts Indonesia, Bangladesh, Malaysia and Dubai among its customers. India rarely shipped more than 7 million tons until last year, when exports hit a record 7.2 million.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

White House nears road map on Taiwan trade amid China discord

The Biden administration will unveil details for trade talks with Taiwan soon, White House Indo-Pacific Coordinator Kurt Campbell said, a move likely to inflame tensions with China already high following…

View Article
https://www.ajot.com/images/uploads/article/Jeep_sign.jpg
Jeep maker may invest billions to make EVs in Mexico
View Article
Argentina asked crop exporters to bring $1 billion next week

Argentina’s government has asked the country’s crop export and processing companies to make sales equivalent to $1 billion over the next week as it seeks to bolster reserves, according to…

View Article
Major Ukraine grower says Russia stole 200,000 tons of its crops

Ukrainian farm company HarvEast said Russia stole as much as 200,000 tons of crops from its farms in eastern occupied areas, as Kyiv urges buyers to seize suspicious grain shipments.

View Article
https://www.ajot.com/images/uploads/article/Mary_Ng.jpg
Trudeau trade chief vows to keep pushing US on global tax deal
View Article
As UK Economy Falters, Here’s Who Could be Chancellor

The next UK prime minister takes charge in September facing a brutal economic storm, heaping intense scrutiny on their pick for Chancellor of the Exchequer.

View Article