Sugar mills facing trouble receiving orders even after export authorization, and local prices increased by 10%

Even after the government allowed 10 lakh tonnes of sugar export permission in the current season 2024-25, Indian traders are failing to get orders. Four dealers said, "Indian sugar mills are seeking a premium over London prices, which foreign buyers are not willing to pay." The pace of sugar exports from India has also slowed down to a three-year low.

A Mumbai dealer said local sugar prices have increased by about 10 percent since getting export permission from the Center. Mills now demand a huge premium over global prices for the export of their allotted quota of 3.174 percent. Dealers said, sugar mills have contracted to export 20,000 tonnes of white and refined sugar this week. This contract has been made between $ 490 to $ 510 per tonne, about $ 10-25 per tonne higher than the benchmark London futures.

In fact, sugar mills must export the allotted quota before September 2025, so they are not showing haste in the contract. Instead, they are waiting for the global prices of sugar to rise. Uttar Pradesh has exported about one lakh tonnes of sugar from the allotted quota of 2,74,184 tonnes.