Indian sugar mills have contracted to export 50,000 tonnes of white sugar to Sri Lanka, Myanmar, Afghanistan and Turkmenistan at USD 340-USD 345 a tonne, free on board, trade sources said, the first major deal in the past few months.
India's sugar production rose by 16 percent to 27.84 million tonnes (MT) till May 15 of the current marketing year that started in October last year, resulting in sweetener's low prices and huge cane arrears to farmers at over Rs 21,000 crore.
India's sugar production rose by 15 percent to 26.35 million tonnes so far during the current marketing year, resulting in fall of ex-factory prices to seven-year low and a surge in cane arrears to nearly Rs 20,000 crore.
India's sugar production fell by 21 percent to 85.5 lakh tonnes till January 15 of the current marketing year that started in October on account of delay in crushing operations, according to industry data.
In view of surplus domestic sugar output, Union Minister Ajit Singh on Friday shot off a letter to Prime Minister Manmohan Singh demanding export sops and hike in import duty to improve finances of millers.
The country's sugar production is expected to decline by five percent to 23.7 million tonnes in marketing year 2013-14 starting October, due to an expected lower sugarcane output, especially from drought-hit Maharashtra, said Indian Sugar Mills Association.
Sugar output could fall by three million tonnes to 23 million tonnes (MT) in the 2012-13 marketing year starting October on account of poor rains, but supply would be enough to meet demand, Food Minister K V Thomas said.
The government is likely to take a decision on allowing sugar exports in the 2011-12 marketing year, which commenced this month, only after Diwali, as mills are yet to exhaust the export quota of 2010-11, Agriculture Minister Sharad Pawar said on Thursday.