India is set to extend its sugar export ban for the second consecutive year as the world’s largest consumer of sugar faces the possibility of reduced cane production, reported Reuters quoting government sources.
According to the Reuters, additionally, New Delhi plans to increase the price at which oil companies purchase ethanol from sugar mills to enhance biofuel supplies, the sources stated, speaking on condition of anonymity as the discussions are not public.
India’s continued absence from the global market is expected to tighten global sugar supplies, which would support higher benchmark prices in New York and London. The ban will coincide with a reduction in sugar supplies from Brazil, the leading global producer and supplier, due to a drought in the country.
One government source noted, ‘Given the current crop situation, there is no room for sugar exports. After meeting domestic sugar needs, our next focus is on ethanol blending, and we require more cane to achieve the ethanol blending targets.'”
