The Indian sugar mills have backed out of many import deals as the sugar prices decline considerably.

As much as 10,000 tons of sugar had to be imported to India but since the price has gone down in the international market, it is unviable to go for such deals.

There is also news that the mills can increase this quantity to 60,000 tons.

The New York sugar futures went down by 30 per cent in February which has been driven by stronger supply from Brazil and Europe.

In India, however, there has not been much of a change in the supply.

Following this, the share prices of all the major listed sugar companies have fallen down considerably on Wednesday.

Talking about the sudden mood shift, Mukesh Kuvadia, Secretary General, Bombay Sugar Merchants' Association said that the there have been major washouts and defaults. And with the prices suddenly going down the whole environment has turned bearish, he further added.

The mills had earlier signed deals at around $305-$620 per ton in between January and February. The shipment was to be done in July.

But now, the prices have dropped by $100 per ton.