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India – Sugar exports may rise as a result of decontrol

Sugar exports from India may rise starting in 2013/14 after the government has partially decontrolled the sector. This could result in lower local prices and make exports of sugar more attractive for the milling industry. According to the Indian Sugar Mills Association (ISMA) there will be surplus sugar available for export in 2013/14. However, for the time being Indian white sugar prices are above those on the international market.

As the result of the decontrol policy more sugar may hit the market once crushing starts. This could result in a situation when sugar prices come under pressure between October and March. As a result the attractiveness of exports could rise.

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