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By Rajendra Jadhav<\/p>\n
MUMBAI (Reuters) - Indian mills have contracts to export 600,000 tonnes of sugar in the 2024\/25 marketing year ending in September, but are reluctant to sign new export deals as local prices have risen, five industry officials told Reuters.<\/p>\n
The slower pace of shipments from India, the world's second-largest sugar producer, will support global sugar prices, which are near three-year lows.<\/p>\n
After suspending exports last year to calm domestic prices, India in January allowed the export of 1 million tonnes of sugar during the current season to help mills offload surplus stocks.<\/p>\n
However, as domestic sugar prices have strengthened and are expected to rise further due to lower production and demand expected for the summer season, said a Mumbai-based dealer with a global trading house, exports have slowed this month after picking up last month.<\/p>\n
All sources declined to be identified as they were not authorized to speak to the press.<\/p>\n
India's sugar production for the 2024\/25 marketing year is expected to fall to 25.8 million tonnes, compared with annual consumption of 29 million tonnes.<\/p>\n<\/p>\n
Consumption of cold drinks and ice creams increases in India during the summer months, roughly from mid-March to mid-June, increasing the demand for sugar to sweeten them.<\/p>\n
Mills have shipped about 250,000 tonnes of the 600,000 tonnes in export contracts signed since January, another New Delhi-based dealer said.<\/p>\n
Indian prices of low-quality white sugar are nearly US$$20 per tonne above London futures, prompting buyers to seek better-quality Brazilian sugar that is available at the same price, another dealer at a Mumbai-based trading company said.<\/p>\n
India, which sells sugar to countries including Afghanistan, Bangladesh, Indonesia, Sri Lanka and the United Arab Emirates, was the world's second-largest exporter for the five years to 2022-23, with volumes averaging 6.8 million tonnes a year.<\/p>\n
Despite the current slowdown, mills will be able to export the entire 1 million tonne quota, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd.<\/p>\n
\u201cMills have plenty of time. They can export sugar whenever they find a good price until the end of September,\u201d Naiknavare said.<\/p>\n
(Reporting by Rajendra Jadhav)<\/p>\n<\/p><\/div>\n