India is still to announce whether the decision to permit 500,000 tonnes of sugar for export is to be ratified. Sugar prices have fallen sharply recently and India’s indecision may cost exporters if after delays the panel of ministers approves sugar exports under its Open General Licence (OGL).
India is the world’s second largest producer of sugar after Brazil. The delay in confirming OGL exports had been to ensure sufficient domestic supplies and to avoid the impacts of agflation.
India is expected to produce between 24.5 million tonnes and 25.5 million tonnes of sugar. Indian consumption is in the region of 22 million tonnes. Indian whites were available at $720 per tonne down by approximately $50.