India’s sugar exports are likely to be far lower than a 5 million-tonne target set by New Delhi as a strengthening rupee and falling global prices make shipments unattractive despite a government push for overseas sales, industry officials said.
Lower shipments from the world’s No. 2 sugar producer could support global prices that fell more than 20 percent in 2018, but fewer exports could also increase Indian stockpiles ahead of the next marketing season and force the government to provide more support to an ailing industry.
The country started 2018/19 with opening stocks of 10.7 million tonnes, and the inventory at the beginning of the next season will be bigger, Pawar said.