Indian sugar mills have so far contracted to export 3.5 million tonnes of sugar the in 2019/20 marketing year, mainly to Iran, Malaysia, Somalia and Sri Lanka, a trade body said on Wednesday.
The exports will help the world’s biggest sugar producer in bringing down stockpiles and supporting local prices of the sweetener, crucial in ensuring millions of farmers get government-mandated price.
Out of the 3.5 million tonnes sugar, mills have already dispatched 2.67 million tonnes, according to data compiled by the All India Sugar Trade Association (AISTA).
“Iran, Malaysia, Somalia, Sri Lanka and Afghanistan were key buyers of Indian sugar,” said Praful Vithalani, president of the AISTA.
India, hoping to reduce its vast surplus stocks of sugar, in August approved an export subsidy of 10,448 rupees ($142) per tonne of the sweetener for the marketing year ending on Sept. 30.