The cash flow of mills are also constrained as domestic sugar prices have also declined in recent weeks.
PUNE: A decline in global raw sugar prices combined with strengthening of the Indian rupee has put the brakes on Indian sugar exports. While the trade is waiting for the markets to adjust, sugar millers have started production of white sugar in anticipation of bigger raw sugar contracts. Various trade estimates have pegged India’s 2018-19 sugar export contracts between 6 lakh tonnes and 8.5 lakh tonnes, two-thirds for raw sugar.
“Sugar export deals have come to a standstill due to fall in raw sugar futures and strengthening of the Indian rupee,” said India head of an MNC export house, requesting not to be identified.
Confirming the slowdown in exports, Rohit Pawar, VP, Indian Sugar Mills Association (Isma) said, “Export deals have slowed down due to increased gap between the price offered by export houses for sugar and the expectations of sugar millers, especially from Maharashtra, due to their higher cost of production. The cash flow of mills are also constrained as domestic sugar prices have also declined in recent weeks.”
NCDEX spot price of M-grade sugar for Muzaffarnagar delivery fell to Rs 31.50/kg on November 14 from Rs 32.54/kg a month ago.
Government allocates 8,606 tonnes of raw sugar exports to the US
