India, the globe's second largest supplier of sugar is pondering whether to permit its mills to ship 1 million additional metric tons of the sweetener next week, according to Bloomberg.
Trailing only Brazil for production of the sweetener, India is considering the measure as a technique of drawing down a surplus, an unnamed official told the news source. A panel of ministers under the direction of the finance minister is slated to discuss the matter next Wednesday, the food minister told reporters in New Delhi on Wednesday.
"Whenever India tries to export it pressurizes prices," research head Kishore Narne with AnandRathi Commodities told the news service on Wednesday. "There is a lot of inventory with the mills, and the cost of inventory is high. Whether global prices are attractive or not, we have to export."
Production of the sweetener in India from October 1 of last year to this past April 15 gained 13 percent to amount to 24.6 million tons, the Indian Sugar Mills Association told Bloomberg on Tuesday.
Reuters reports the market for sugar is likely to be impacted by increased U.S. imports and the Brazilian harvest.
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