India, the world's second largest sugar producer, has seen its exports halted as dealers have not signed new contracts in five days following a surge in local prices, based on expectations of lower output. The country has contracted to export 1.6m tonnes of sugar since the season began on 1 October, with 1.3m tonnes shipped so far. With predictions of lower output and higher local prices, traders say India may not be able to meet its export target. Dealers have shipped out 1.3 million tonnes so far. As we highlighted last week, adverse weather conditions have hit global sugar producing countries leading to expectations of an impending sugar shortage. In China, where domestic demand is expected to grow by around 10% this year, prices are likely to rise further due to weak supply from overseas markets.
India, the world's second largest sugar producer, has seen its exports halted as dealers have not signed new contracts in five days following a surge in local prices, based on expectations of lower output. The country has contracted to export 1.6m tonnes of sugar since the season began on 1 October, with 1.3m tonnes shipped so far. With predictions of lower output and higher local prices, traders say India may not be able to meet its export target. As we highlighted last week, adverse weather conditions have hit global sugar producing countries leading to expectations of an impending sugar shortage. In China, where domestic demand is expected to grow by around 10% this year, prices are likely to rise further due to weak supply from overseas markets.