India's domestic demand for sugar is almost 21-22 million tonne and the balance is available for exports.
Maharashtra, India's largest sugar producer, may miss its sugar production target of about 9.3 million tonne this season as cane yields are seen falling with farmers probably shifting to other crops due to unfavourable climatic conditions and delayed monsoon.
Export of the first tranche in the new season has started under the open general licence. Around 10 factories have got permits as in December , 2011 to export sugar.
Probable Chinese imports of sugar from India, in order to shore up their exhausted stocks may have a positive impact on Indian prices.
Other than China, India is expected to sell sugar to Indonesia, east Africa and West Asia.