Indian mills renegotiate sugar export deals for a better price

Indian sugar mills have renegotiated and defaulted on contracts to supply 400,000 tonnes of the sweetener to foreign buyers as prices soared after the government cut this year's export quota, five dealers told Reuters. By Reuters Renegotiations and defaults by mills in India, the second largest sugar exporter in the world, may support global commodity prices. Mills started selling sugar to trading houses in late August and signed deals to supply around 2mt of sugar for export even before New Delhi approved a 6mt export quota earlier this month. “Some mills that signed agreements in advance are not honoring the contracts. They are threatening to default unless buyers are ready to renegotiate at higher prices,” said a Mumbai-based trader with a global trading company. Four other sources confirmed that export deals have been renegotiated or are in default, declining to be identified because of their companies' policy on talking to the press. Two months ago, mills in the western state ...