First Published on Apr 5, 2016 11:43 am 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 1.6 m tonnes of sugar since the season began on 1 October , with 1.3 m tonnes shipped so far . With predictions of lower output and higher local prices , traders believe India may not be able to meet its export target . As we reported last week , adverse weather conditions have hit global sugar producing countries due to expectations of an impending sugar shortage . According to Green Pool , sugar is running at a deficit that is due to reach 100 metric tonnes in 2016 - 2017 , which may have a knock - on effect on companies using sugar in their production .
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 1.6 m tonnes of sugar since the season began on 1 October , with 1.3 m tonnes shipped so far . With predictions of lower output and higher local prices , traders believe India may not be able to meet its export target . As we reported last week , adverse weather conditions have hit global sugar producing countries due to expectations of an impending sugar shortage . According to Green Pool , sugar is running at a deficit that is due to reach 100 metric tonnes in 2016 - 2017 , which may have a knock - on effect on companies using sugar in their production .