India is not considering allowing sugar exports for the next harvest season until at least the first half of next year in fear of production shortage due to El Nino, Reuters reported citing Indian government sources.
The world’s second largest sugar exporter capped exports of 6.1 million tonnes for this season. Sources told Reuters that even if the government decided to ship out sugar, it will be no more than 4 million tonnes.
The government also scaled down this year’s output to 32.8 million from earlier 36 million tonnes.
SB1 sugar is trading at $25.85 per lb. (+1.81%), coming down from an earlier height of $27 per lb. Meanwhile, Euronext Sugar No 5 (LSU1) rose 1.63% to $692.
