Government sources said that India is considering permitting mills to ship out supplies of raw sugar that have accumulated in ports and warehouses, weeks after it imposed curbs on overseas sales of the sweetener.
Additional shipments from India, the second-largest sugar exporter in the world after Brazil, might put pressure on raw sugar futures, which are now trading close to their four-month low.
India, the second-most populated country in the world, fights excessive food inflation. Last month, India set a limit on this season's exports at 10 million tonnes, a number they were almost reached.
According to official guidelines, a senior government official who requested anonymity remarked, "We are looking into it. The idea pertaining to raw sugar is being considered."
In order to deal with growing inventories of sweeteners as a result of the export cap, sugar mills have asked the government to let them ship out unprocessed supplies. Requests for a response from a government spokesman were not immediately fulfilled.
An estimated 500,000 tonnes of raw sugar remain in the stocks, with roughly 200,000 tonnes of that quantity Stuck at ports across the nation.
White, or refined sugar, made up the remaining 4.5 million tonnes of India's record 10 million tonnes of sugar exports this year, according to trade, industry, and government sources.
Indian mills solely generate raw sugar for foreign refineries that transform it into white sugar. India has been exporting a large amount of raw sugar over the past few years, establishing it as a reliable supplier alongside major players Brazil and Thailand.
Aditya Jhunjhunwala, president of the Indian Sugar Mills Association, a group of manufacturers, stated that since raw sugar cannot be sold on the local market, exporting it makes sense. Otherwise "our supplies' quality could degrade over time."
A dealer in Mumbai said that the government had previously gathered information about raw sugar shipments from mills and exporters.
According to a trader with a multinational trading company located in New Delhi, the unexpected suspension of sugar exports and logistical challenges, such as a lack of trucks and railway wagons, prohibited mills from sending out raw materials.
Indian sugar is quite competitive on the global market, so if the government permits mills to export their stockpiles, there would be a lot of buyers, he said.
