India’s white sugar shipments have been brought to a near standstill by the coronavirus lockdown

India’s white sugar shipments have been brought to a near standstill by the coronavirus lockdown, depriving the global market of key supplies after a poor harvest in Asia’s top exporter Thailand.

Most of India’s private ports have declared force majeure and while government ports are operating, they face labour shortages as Indians have been ordered to stay home and avoid spreading the coronavirus under a 21-day lockdown.

“Ports are functioning for clearing backlogs rather than executing new business,” Rahil Shaikh, managing director of trading company MEIR Commodities India, said.

“Container traffic has virtually stopped, there’s no courier services, no buses, and no public transport. Migrant labour has gone back to the countryside and customs are operating at about 5-10% of capacity,” Shaikh said.

Even before the lockdown, Indian industry officials had cut 2019/20 sugar export estimates to 4.5 million tonnes as a drop in prices had made overseas sales unprofitable.

This could fall further if the lockdown is extended. Most of India’s 2019/20 sugar exports contracts were for white, rather than raw, sugar.

“In the last three weeks, not a single new deal was signed due to labour shortages and lower prices,” a Mumbai-based dealer at a global trading firm said. Two other dealers based in the capital confirmed the trend.

Of the 3.75 million tonnes of sugar export deals agreed to since the start of the season on Oct 1, Indian mills have shipped out 2.86 million tonnes, the All India Sugar Trade Association said.

Shaik said nearly all the remaining tonnages are stuck.

Data from his firm shows private operators like Adani Ports and Special Economic Zone have declared force majeure, while state-run ports such as Jawaharlal Nehru Port Trust (JNPT) are all operating with delays.