India is planning to impose a ban on sugar exports for the upcoming season starting in October due to a drop in cane yields attributed to insufficient rainfall.
As per news agency Reuters, three government sources revealed this highlighting the adverse effects of the scanty rain on major cane-producing regions. Monsoon rains in Maharashtra and Karnataka are below the average levels.
The expected ban on Indian sugar exports has raised concerns about its potential impact on global market and it can eventually lead to increase sugar prices.
According to the ISMA, India’s sugar production for the upcoming 2023/24 season might experience a decline of 3.3 percent, resulting in a total of 31.7 million tonnes.
India allowed mills to export only 6.1 million tonnes of sugar during the current season, after letting them sell a record 11.1 million tonnes last season.
Recently, to meet the festival demand, the government has released an additional 2 LMT sugar quota for August 2023. Government is leaving no stone unturned to ensure stable sugar prices.
