After rice, India will ban sugar exports

India is expected to ban sugar mills from exporting sugar in the next crop year, starting from October.

Sugarcane is displayed for sale at a market in Bangalore, India. (Source: AFP)

The move by India is the first in seven years, amid a lack of rain that has reduced sugarcane yields.

India’s absence from the world market is likely to boost benchmark prices in New York and London, where sugar is trading at multi-year highs, raising concerns about the risk of rising inflation in global food markets.

New Delhi’s main focus is to meet domestic sugar demand and produce ethanol from surplus sugarcane, government sources said. In the upcoming season, India is likely to run out of sugar to meet its export quota.

India has allowed mills to export only 6.1 million tonnes of sugar in the current season to September 30, after allowing businesses to sell a record 11.1 million tonnes in the previous season.

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

Rainfall in the top sugarcane-growing districts of Maharashtra and Karnataka states, which account for more than half of India's total sugar output, has been up to 50% below average this year, according to the India Meteorological Department.

In addition, erratic and scattered rains will also reduce sugar production in 2023-2024 and even reduce planting in 2024-2025.

India's sugar output is forecast to fall 3.3% to 31.7 million tonnes in 2023-24.

Source: https://baoquocte.vn/sau-gao-an-do-se-cam-xuat-khau-duong-239473.html