India's sugar exports slow as global prices correct, rupee firms

Mills pause after signing deals to export 4 mn tonnes of sugar; diversion of sugar for ethanol reduces stockpiles, say dealers

Indian mills are holding off on signing new sugar export contracts as falling global prices and a strengthening rupee have widened the gap between local and global rates, industry officials told Reuters.

Lower shipments from the world's No. 2 sugar producer could support global prices that fell to their lowest in 5-1/2 months on Monday but could also prompt Indian mills to divert more sugar for ethanol production.

"At current price level exports are not viable from India.

Mills are getting much higher prices in the local market," said Ravi Gupta, chairman of export committee at All India Sugar Traders