The move is anticipated to be triggered by conflict over the pace of shipments owing to the absence of US counterpart for discussions with Mexicans sugar chamber.
However, Mexico's Economy Ministry states that cancellation of permits is due to crossing of the limit of exports fixed for six months up to March 31. The export limit was touched before stipulated time.
The suspension of permits comes as a blow to cane refiners, who are already struggling with prices and tight supplies.
Already the trade relations between the United States and Mexico have soured after U.S. President Donald Trump has expressed his plans to revise the North American Free Trade agreement, as it is skewed in favour of Mexico according to him.
In raw sugar futures contract on Intercontinental exchange closed at 31.71 cents per pound on Tuesday, the highest in last five years.
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