The Indian government is expected to allow export of additional
1 million tons of sugar in the 2011-12 sugar season. The decision is based on
the expected sugar surplus in the country. Moreover, more exports will enable
traders to pay farmers without delays. Over the current sugar season, India is
likely to produce about 26 million tons of sugar while country's consumption is
estimated to be circa 22 million tons. Sugar futures for March delivery traded
at 23.32 cent per lb, at the ICE.
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