MUMBAI – Pune-based private sugar mill Parag Agro Sugar and Allied Food has contracted an export deal for 6,000 tn white sugar at the highest price for the ongoing season so far, barring the exports going to Iran, at 23.10 rupees per kg.

Iran offers a premium for Indian sugar over other importing nations due to convenience of payment in the Indian currency. The US had imposed sanctions on Iran, following which it had agreed to sell crude oil to India in rupee terms, and it uses the Indian currency to buy sugar and other Indian goods.

Other mills across the country have signed deals at ex-factory price of 20.5-22.5 rupees per kg, traders said.

"We have recently signed a deal to export 6,000 tn sugar at ex-factory price of 23.10 rupees per kg," said Dilip Walse Patil, proprietor of the sugar mill, on the sidelines of All India Sugar Trade Association Sugar Conclave 2020 late Sunday. Patil also holds the portfolio of minister of state excise and labour department in the recently-formed Shiv Sena-led coalition government in Maharashtra.

The exports are destined to West Asia.

This the first deal contracted by the mill in the current season so far, out of the total quota of 11,400 tn allocated to the sugar mill, said Chairman Yash Dahake.

For 2019-20 (Oct-Sep), the government has set a target to export 6 mln tn sugar, and is giving a subsidy of 10.45 rupees per kg.