Bracing for another surplus output this season, India has sealed deals to export 1.4 million tonnes (MT) of sugar so far in the season that began in October, but is likely to miss its target of 2 MT of exports set for this season, according to industry body- Indian Sugar Mills Association (ISMA), which expects exports to be around 1.8 MT for the sugar season that comes to end in September, 2014. Export deals have come to a halt of lately on account of sharp rise in local prices, after a long spell of free-fall, and unattractive global rates.
Mills, since October have exported 800,000 tonnes of raws and 650,000 tonnes of whites, likely setting the stage for fourth straight year of excess production over demand.
Higher output in the past few years led to a slump in prices, prompting mills to seek incentives from government to make good their losses and boost exports and trim bulging stocks at home. In February, the government agreed to give Rs 3,300 ($54.79) a tonne subsidy for raw sugar production meant for exports.