India set to allow mills to export around 1 million tonnes of sugar

India set to allow mills to export around 1 million tonnes of sugar

India is set to allow factories to export around 1 million tonnes of sugar, mostly unrefined, after granting companies’ requests to allow them to ship stocks that have piled up at ports and warehouses, government and trade sources said on Thursday.

Logistical problems, such as a shortage of rail cars, have prevented factories from shipping raw or unrefined sugar, which increased after New Delhi in May capped this year’s exports at 10 million tonnes to prevent a sharp rise in domestic prices.

“There is a surplus in the country and as we know the raw sugar stocks are for the export market, so it makes sense to allow them to be exported,” said a government source who did not want to be named in line with official rules., he said.

Four sources, two from the government and two from business, said the permission was expected to be granted very soon, without giving an exact time.

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