In response to out-of-season rains boosting cane production in key producing states, the Indian sugar industry has urged the government to permit the export of 1 million metric tons of sugar.
The Indian Sugar Mills Association (ISMA) reported on Tuesday that the country is likely to produce 32 million tons of sugar in the current marketing year, ending on September 30, against a domestic demand of 28.5 million tons.
With the expected increase in production, the country's sugar stocks are projected to reach 9.1 million tons by the end of the current marketing year, up from 5.6 million tons last year. This surplus creates room to allow exports of 1 million tons, according to a statement from the association.
India, the world's second-largest sugar producer, refrained from allowing exports in the current season to keep local prices under control ahead of the country's parliamentary elections, scheduled to take place over nearly seven weeks starting from April 19.
In the 2022/23 season, India permitted mills to export 6.1 million tons of sugar, following a record export allowance of 11.1 million tons in 2021/22.
According to ISMA, the country's sugar mills produced 30.2 million tons of sugar in the first six months of the 2023/24 season, slightly higher than the 30 million tons produced a year ago.
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