Indian traders for the first time have signed sugar export contracts five months ahead of shipments as a likely drop in Brazil’s production prompted buyers to secure supplies from the South Asian country in advance, five trade sources told Reuters.
Sugar production in Brazil, the world’s biggest producer and exporter, is likely to drop due to a drought and frost that has damaged the sugarcane crop. Traders said the likely decline has already lifted sugar prices near their highest levels in 3-years and it is prompting buyers to secure supplies in advance from India, the world’s second biggest sugar producer.
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