Connect with us

Hi, what are you looking for?

Top Stories

Editor's Pick

India set to ban sugar exports for first time in 7 years

MUMBAI/NEW DELHI – India is expected to ban mills from exporting sugar in the next season beginning October, halting shipments for the first time in seven years, as a lack of rain has cut cane yields, three government sources said.

India’s absence from the world market would be likely to increase benchmark prices in New York SBc1 and London LSUc1 that are already trading around multi-year highs, triggering fears of further inflation on global food markets.

“Our primary focus is to fulfil local sugar requirements and produce ethanol from surplus sugarcane,” said a government source who asked not to be named in line with official rules. “For the upcoming season, we will not have enough sugar to allocate for export quotas.”

India allowed mills to export only 6.1 million tons of sugar during the current season to Sept. 30, after letting them sell a record 11.1 million tons last season.

In 2016, India imposed a 20% tax on sugar exports to curb overseas sales.

Monsoon rains in the top cane growing districts of the western state of Maharashtra and the southern state of Karnataka – which together account for more than half of India’s total sugar output – have been as much as 50% below average so far this year, weather department data showed.

Patchy rains would cut sugar output in the 2023/24 season and even reduce planting for the 2024/25 season, an industry official, who declined to be named, said.

Local sugar prices jumped this week to their highest level in nearly two years, prompting the government to allow mills to sell an extra 200,000 tons in August.

“Food inflation is a concern. The recent increase in sugar prices eliminates any possibility of exports,” said another government source.

Retail inflation in India jumped to a 15-month high of 7.44% in July and food inflation to 11.5% – its highest in over three years.

India’s sugar production could fall 3.3% to 31.7 million tons in the 2023/24 season.

“We’ve allowed mills to export large volumes of sugar during the past two years,” said the third government source. “But we also have to ensure sufficient supplies and stable prices.”

India surprised buyers last month by imposing a ban on non-basmati white rice exports. New Delhi also imposed a 40% duty last week on exports of onions as it tries to calm food prices ahead of state elections later this year.

A Mumbai-based dealer with a global trade house said lower output in Thailand was also expected to reduce shipments and major producer Brazil would alone not be able to fill the gap. — Reuters


You May Also Like


As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...

Editor's Pick

Standard Chartered Bank (SCB), the oldest international bank in the country,...


<?xml encoding=”utf-8″ ?????????> The business experts at Forbes Advisor have conducted an analysis of the most recent UK business demography statistics report from the...


<?xml encoding=”utf-8″ ?????????> Economists have warned that calls from Conservative MPs for Chancellor Jeremy Hunt to cut taxes after improved borrowing data emerged show...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.