New Delhi, Oct. 15 -- In January, the central government allowed sugar exports totalling 1 million tonnes for the 2024-25 season (October-September). However, their shipments fell short of the allotted quota. What went wrong? Mint explains.

Sugar mills prioritized local sales over exports. When the quota was announced in January, the global white sugar price was over $500 a tonne (about Rs.44,360 per tonne). On the other hand, domestic ex-mill prices were lower. But over the last two months, domestic sugar prices have been higher than global market. In the final months of the season, global prices fell to $450-475 a tonne, reducing net export realizations to about Rs.36,600 a tonne after freight. Meanwhile, domestic ex-mill prices stayed...