Govt may allow more sugar exports to prevent defaults on contracts

The government may allow sugar mills to export more than previously permitted to help them prevent defaults on contracts, according to people familiar with the matter.

The government is considering giving the green light to additional sales of as much as 1.2 million tons of sugar for the year ending September 30, said the people.

That’s on top of the current quota of 10 million tons. India, the world’s second-biggest sugar producer, restricted exports in May to safeguard its food supplies.

Now, with inventories appearing sufficient to satisfy domestic consumption, growers have asked to increase shipments. Any additional exports this year may pressure global prices.

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