India Limits Sugar Exports to 10 Million Tonnes, Reports Reuters

By Rajendra Jadhav and Mayank Bhardwaj

MUMBAI – For the first time in six years, India has implemented restrictions on sugar exports, capping this season’s shipments at 10 million tonnes, according to a government order aimed at avoiding a rise in domestic prices following record sales in the global market.

The government has mandated that exporters seek approval for any overseas shipments between June 1 and October 31, as stated in the order.

As the largest sugar producer worldwide and the second-largest exporter after Brazil, India plays a significant role in the global sugar market.

Reports in March indicated that India was looking to limit sugar exports to manage local prices and maintain steady sugar supplies domestically.

Following the announcement, benchmark white sugar prices in London increased by more than 1%.

A dealer from a global trading firm based in Mumbai noted that the government is concerned about food inflation, prompting efforts to ensure ample sugar supply during the festival season.

Exporters expressed that the cap of 10 million tonnes would still enable India to sell a substantial amount of sugar internationally. Initially, the government aimed to limit exports to 8 million tonnes; however, after revising production estimates upward, it decided to allow a larger volume for export.

The Indian Sugar Mills Association has updated its production forecast to 35.5 million tonnes, an increase from the previous estimate of 31 million tonnes.

So far in the current marketing year, Indian mills have contracted to export 9.1 million tonnes of sugar without government subsidies, and approximately 8.2 million tonnes of that amount has already been dispatched.