Mumbai: India likely to impose ceiling sugar export Industry and government sources said on Friday that the target has been set to ensure adequate domestic supply and control local prices for the second year in a row from this October.
India, the world’s largest sugar producer, may limit sugar exports to 6 million to 7 million tonnes in the 2022/23 October-September season, which is about a third less than the current season, industry and total exports. Government sources said. He asked not to be named as he was not authorized to speak to the media.
A government spokesman did not immediately respond to a request for comment.
Export ban by India, which is also the world’s second largest sugar exporter, may raise the benchmark further white sugar pricesThose are already trading near 5-1/2 year highs, traders said.
Factors driving global sugar prices this year are low sugar production in Brazil, a major producer and largest exporter, and crude oil prices at several years’ high. Higher crude oil prices encourage sugar mills to plant more cane to produce ethanol for blending into gasoline.
Brazil’s sugar production is set to rise again during the current season, but with restricted exports from India, traders do not expect prices to drop and may instead increase further.
A senior government official with knowledge of the matter said, “There is a need to control exports to avoid any panic in the market.
Sources said the sources expect the export limit for the next season to be in the range of 6 million to 7 million tonnes, but the exact quantity will be decided closer to the beginning of the 2022/23 season.
He said the government would look into the performance of monsoon before deciding the quota.
Monsoon rains in the sugarcane growing regions of Maharashtra, the country’s largest producer, were 60% below average since the start of the rainy season on June 1, according to the Met Office data.
New Delhi on May 24 banned the export of sugar for the first time in six years and fixed a limit of 10 million tonnes for this season.
Record exports in the current season could bring inventory to 6.5 million tonnes on October 1, when the next 2022/23 season begins, from 8.2 million tonnes a year ago, industry and government estimates show.
Aditya Jhunjhunwala, president of the Sugar Mills Association of India, a producing body, has requested that the government allow mills to export 8 million tonnes of sugar next year, as production may exceed this year’s record 36 million tonnes, as per reports. Seen by a letter. Reuters. The association did not immediately respond to a request for comment.
The letter also urged the government to take an early decision on next year’s export quota to help mills cash in on firmer global prices.
India mainly exports to Indonesia, Bangladesh, Sudan, United Arab Emirates, Nepal and China.
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