India is mulling over the prospect of banning sugar exports for the first time in seven years, effective from the upcoming season beginning in October. The move comes in response to this year’s diminished sugarcane yield caused by inadequate rainfall. If implemented, this decision could significantly affect sugar mills’ ability to export the commodity.
Impending Sugar Export Ban due to Low Sugarcane Yield
Insiders reveal that the primary focus of the Indian government is to meet the nation’s sugar demands and make efficient use of surplus sugarcane for ethanol production. Speaking anonymously, a government source confirmed that next season’s sugar yield might fall short of the quantity needed for export allocation. This season, only 61 lakh tonnes of sugar were permitted for export, while the previous year saw an allowance of 11.1 million tonnes. The potential export ban could potentially lead to increased sugar prices in global markets, adding to the prevailing upward trend.
