More sugar exports likely after mills fill quota

India, the world's second-largest sugar producer, will consider more overseas sales after mills exhaust a quota of one million metric tons allowed last month, Food Secretary BC Gupta said.

The country will maintain enough stockpiles to meet demand for three months, Gupta said in an interview at his office in New Delhi on Wednesday. Sugar production may total 24.6 million tons in the year that began on Oct. 1, compared with estimated demand of 22.5 million tons, he said.

The surplus available for exports may total about 2 million tons, he said.

Rising exports from India may widen the first global sugar surplus in three years and weigh on prices, which have fallen 27 percent this year in New York on expectations of increased production from Thailand, Russia and the European Union.

 

"We will assess sugar production and cane planting before allowing more exports," Gupta said. "Supplies are comfortable this year." India allowed mills export 115,686 tons of sugar from the new crop season, the food ministry said on its website on Wednesday. Producers were allowed to ship 2.6 million tons in 2010-2011.

The government plans to promote sugar beet cultivation to boost output, Gupta said.

Mills can process beet once they complete cane crushing, he said.