MUMBAI, May 31 (Reuters) – Indian mills have shipped out all the 6.1 million tonnes of sugar allowed for exports, trade officers informed Reuters, cashing in on multi-year excessive costs on the earth market and strong demand.

The world’s second-biggest producer of the sweetener is, nonetheless, unlikely to permit extra exports within the present advertising yr ending on Sept. 30, attributable to a possible drop in manufacturing.

This may carry world costs , and permit high producer Brazil to promote extra sugar on the world market.

“The mills have shipped the entire allocated quantity, and nothing has left since global prices became attractive,” Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd, informed Reuters.

Mills have been getting greater than 50,000 rupees ($604.6) per tonne from the abroad sale towards the native value of 36,500 rupees, sellers mentioned.

A hearsay earlier this month that India may ban exports prompted mills to speed up the remaining shipments, he mentioned.

The nation exported a document 11 million tonnes of sugar within the earlier 2021-2022 season, however New Delhi allowed exports of solely 6.1 million tonnes within the present yr attributable to an anticipated drop in manufacturing.

Production is prone to fall to 32.8 million tonnes within the present yr, from a document 35.8 million tonnes within the earlier season.

The drop within the manufacturing has closed the window of extra exports, which mills have been looking for earlier, mentioned a senior trade official, who declined to be named.

“We are now not demanding the government to allow more exports in the current season. We know it’s not possible,” he mentioned.

India primarily exports sugar to Indonesia, Bangladesh, Malaysia, Sudan, Somalia and the United Arab Emirates.

Asian and African patrons have shifted to Brazil from India because the south American nation has ample surplus for exports, mentioned a Mumbai-based seller with a worldwide commerce home.

($1 = 82.7 Indian rupees)

Reporting by Rajendra Jadhav; Editing by Sriraj Kalluvila

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