Sugar exports have come to a halt as dealers have not signed new contracts in the past five days after prices surged on expectations of lower output, trade sources said on Tuesday.
India, the world's biggest sugar producer after Brazil, has contracted to export 1.6 million tonnes since the season began on October 1. Dealers have shipped out 1.3 million tonnes so far.
Local prices have surged nearly 8 per cent in the past 10 days after domestic output estimate were cut by 1.4 per cent from an earlier forecast. Output is expected to fall this season after six straight years of surplus production.
The government was instrumental in persuading mills to agree to a target of 3.2 million tonnes of sugar exports in 2015/16. With forecasts of lower output and higher local prices, traders say the export target may not be met.
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