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Monday, July 22, 2024

First time in seven years that the government is planning to impose a ban on sugar exports

<p>According to a Reuters story citing three government sources, the government is anticipated to prohibit mills from exporting sugar in the next season starting in October, stopping exports for the first time in seven years since a lack of rain has reduced cane harvests.</p>
<p>The Indian sugar export embargo is projected to push up already near multi-year high benchmark prices in New York and London, raising concerns about future food market inflation.<img decoding=”async” class=”alignnone wp-image-144211″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-ssmb29-will-hollywood-a-listers-appear-in-ss-rajamouli-and-mahesh-babus-film-what-we-know-is-this-download-2023-08-24t180943.229.jpg” alt=”theindiaprint.com ssmb29 will hollywood a listers appear in ss rajamouli and mahesh babus film what we know is this download 2023 08 24t180943.229″ width=”997″ height=”600″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-ssmb29-will-hollywood-a-listers-appear-in-ss-rajamouli-and-mahesh-babus-film-what-we-know-is-this-download-2023-08-24t180943.229.jpg 289w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-ssmb29-will-hollywood-a-listers-appear-in-ss-rajamouli-and-mahesh-babus-film-what-we-know-is-this-download-2023-08-24t180943.229-150×90.jpg 150w” sizes=”(max-width: 997px) 100vw, 997px” title=”First time in seven years that the government is planning to impose a ban on sugar exports 3″></p>
<p>According to Reuters, who cited a government source, “our main focus is to meet local sugar requirements and produce ethanol from surplus sugarcane.” We won’t have enough sugar to meet export requirements for the forthcoming season.</p>
<p>After allowing mills to sell a record 11.1 million tonnes of sugar previous season, the government only permitted them to export 6.1 million tonnes of sugar during the current season until September 30. In order to reduce exports of sugar, India added a 20% tariff in 2016.</p>
<p>According to meteorological department statistics, monsoon rainfall have been up to 50% below normal in the leading cane-growing regions of Maharashtra and Karnataka, which together produce more than half of all the sugar produced in India.</p>
<p>An industry executive who wished to remain anonymous warned that patchy rainfall will lower sugar production in the 2023–2024 season and even decrease planting for the 2024–25 season.</p>
<p>Since almost two years, local sugar prices have increased this week, leading the government to enable mills to sell an additional 200,000 tonnes in August.</p>
<p>Food price inflation is a problem. Any chance of exporting is gone due to the recent surge in sugar prices, a different government source told Reuters.</p>
<p>July saw a 15-month high for retail inflation in India of 7.44 percent and a three-year high for food inflation of 11.5 percent.</p>
<p>In the 2023–24 season, India’s sugar output might decrease 3.3% to 31.7 million tonnes.</p>
<p>The third government source told Reuters, “We’ve allowed mills to export large volumes of sugar over the last two years.” But we must also make sure there are enough supply and steady pricing.</p>
<p>The government also prohibited the export of non-basmati white rice last month. To lower food costs in advance of state elections later this year, the federal government also placed a 40% levy on onion exports last week.</p>
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