Indian sugar mills will break their export promises, raw sugar prices in the international market reached a high of 20 US cents per pound on Tuesday night. On Wednesday, it fluctuated, falling below the 20 cent threshold before rising again. Contracts are the result of the worldwide market’s response to exporters’ guarantees that there won’t be any defaults and that all obligations will be met. Fears of a default seized the market, and some mills sought to renegotiate or cancel agreements made while prices were about 17 cents.
Prices have since risen, and before supplying sugar supplies, mills want to renegotiate. After the policy announcement, there have been no problems with any contracts, according to the source. Raw sugar for March delivery was quoted at $20.28 cents ($450.66) in early trade on Wednesday, down slightly from $20.29 on Tuesday, continuing a two-week surge that had already reached a seven-month high.
Inversely, white sugar fell by $4.80 a tonne to $546.50 at midday on Wednesday. After the Center set a limit on shipments at 10 million tonnes, sugar exports from India ceased as of June 1.It then approved the export of an additional 1.2 mt of sugar and deferred exports until November 1 so that production in the next season could be evaluated.