Indian traders are facing challenges in securing export contracts despite the government permitting 1 million metric tons of sugar exports. Mills are demanding high premiums over London prices, which buyers are hesitant to pay.
The slower pace of shipments will support global sugar prices, which recently fell to their lowest in three years.
Local prices surged nearly 10% after the export approval, reducing the export incentive for mills.
Traders have contracted 20,000 tons for February shipment at $490-$510 per ton, nearly $10-$25 above London futures.
Mills have until September 2025 to export their quotas, so they are waiting for global prices to rise before finalising deals.
India was the world’s second-largest sugar exporter from 2018-2023, selling mainly to Indonesia, Bangladesh, and the UAE.
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