Contracts for sugar exports signed in advance
Indian traders of sugar have signed contracts five months prior to shipments, as Brazil faces the risk of low production. Brazil is the largest producer and export of sugar in the world. The country has faced drought and frost, which is expected to reduce sugar production as the sugarcane crops were damaged.
According to traders, the prices of sugar have seen highest surge in past three years and thus the buyers have been inclined to purchase from India in advance. India is the second largest producer of sugar. Rahil Shaikh, managing director of MEIR Commodities India said,”Mills would start production after 3-4 months, but traders have sold new season raw sugar for December-January shipments in advance.”
The rising prices of sugar have enabled the Indian exporters to export without the government subsidies. In marketing year 2020-21 ending on 30 September, India’s sugar exports are expected to be 7 million tonnes.