MUMBAI (Reuters) – India’s top sugar producing state of Maharashtra is set to churn out record levels for the second year in a row as farmers have expanded the growing area for the cane crop, the state government said in a statement on Monday.
Higher production will weigh on local prices and may prompt New Delhi to allow sugar exports in the 2022/23 marketing year starting from Oct. 1. Indian exports could weigh on global sugar prices..
Maharashtra could produce 13.8 million tonnes of sugar in the season, slightly higher than 13.7 million tonnes this year, the state government said.
Mills in the state will start cane crushing from Oct. 15 and the season is likely to last for 160 days.
Government sources last week told Reuters that India is poised to allow 5 million tonnes of sugar exports in the first tranche for the new marketing year beginning in October.