NEW DELHI/MUMBAI: India plans to restrict sugar exports for the first time in six years to stem a jump in domestic prices, potentially limiting this season’s exports to 10 million tonnes, a government source said. told Reuters on Tuesday.
India is the world’s largest producer of sugar and the second largest exporter after Brazil.
In March, Reuters reported that India was planning to curb sugar exports to control local prices and ensure stable supplies in the domestic market.
Low sugar production in Brazil and high oil prices that encourage mills there to produce more sugarcane-based ethanol have fueled global price gains.
Initially, India had planned to limit sugar exports to 8 million tonnes, but later the government decided to allow mills to sell some more sugar in the world market as production estimates were revised upwards .
the Indian sugar mills The producers’ body, the association, revised its production estimate to 35.5 million tonnes, up from its previous estimate of 31 million tonnes.
Indian mills have so far signed contracts to export 8.5 million tonnes of sugar without government subsidy in the current 2021/22 marketing year. Of the 8.5 million tonnes contracted, mills have already shipped around 7.1 million tonnes of sweetener.
Shares of major sugar mills such as Balrampur Chini, Dalmia Bharat Sugar, Dhampur Sugar Mills, Dwarikesh Sugar Industries and Shree Renuka Sugars fell up to 8% on Tuesday.
However, traders said allowing mills to export 10 million tonnes would help the country sell large quantities of sugar in the world market.
A Mumbai-based dealer of a global trading firm said, “The 10 million tonne limit is huge and will please both the mill and the government.” He did not want his name to be in line with his company’s policy.
The dealer said that after exporting 10 million tonnes, India’s sugar stock as on October 1, when the next 2022-23 season begins, will total 6 million tonnes, which is to meet the country’s festive season demand during the December quarter, the dealer said. would be sufficient.
India is the world’s largest producer of sugar and the second largest exporter after Brazil.
In March, Reuters reported that India was planning to curb sugar exports to control local prices and ensure stable supplies in the domestic market.
Low sugar production in Brazil and high oil prices that encourage mills there to produce more sugarcane-based ethanol have fueled global price gains.
Initially, India had planned to limit sugar exports to 8 million tonnes, but later the government decided to allow mills to sell some more sugar in the world market as production estimates were revised upwards .
the Indian sugar mills The producers’ body, the association, revised its production estimate to 35.5 million tonnes, up from its previous estimate of 31 million tonnes.
Indian mills have so far signed contracts to export 8.5 million tonnes of sugar without government subsidy in the current 2021/22 marketing year. Of the 8.5 million tonnes contracted, mills have already shipped around 7.1 million tonnes of sweetener.
Shares of major sugar mills such as Balrampur Chini, Dalmia Bharat Sugar, Dhampur Sugar Mills, Dwarikesh Sugar Industries and Shree Renuka Sugars fell up to 8% on Tuesday.
However, traders said allowing mills to export 10 million tonnes would help the country sell large quantities of sugar in the world market.
A Mumbai-based dealer of a global trading firm said, “The 10 million tonne limit is huge and will please both the mill and the government.” He did not want his name to be in line with his company’s policy.
The dealer said that after exporting 10 million tonnes, India’s sugar stock as on October 1, when the next 2022-23 season begins, will total 6 million tonnes, which is to meet the country’s festive season demand during the December quarter, the dealer said. would be sufficient.