India may ship less sugar than predicted

India, the largest sugar user, may export less than forecast and shipments should be spread out to prevent global prices from slumping, a millers’ group said.

The surplus available for sales overseas may be 2 million tonnes in the year started October 1, compared with the 2.5 million tonnes forecast in September, as industrial users rebuild stockpiles after two years of imports, according to the National Federation of Cooperative Sugar Factories.

“We’re not that much glutted with production,” Jayantilal Patel, president of the group, said in a telephone interview. “Exports should be allowed in stages, may be half-a-million tonnes at a time, to ensure global prices don’t collapse and we get the full benefit of high prices.”

 

The government may consider allowing exports in the second week of this month, Farm Minister Sharad Pawar said last week. Shipments may resume next month and the government is likely to hasten applications from mills for about 500,000 tonnes.

India’s production will reach 25.5 million tonnes and demand may be around 23 million tonnes in the year to September 30, National Federation’s Patel said.