india sugar exports: India more likely to impose ceiling on subsequent season’s sugar exports: Sources

India, the world’s largest sugar producer, might cap exports of the sweetener at 6 million to 7 million tonnes within the 2022/23 October-September season, about one-third lower than the entire to be shipped out within the present season, business and authorities sources mentioned. They requested to not be named as they weren’t authorised to talk to media.

A authorities spokesman didn’t instantly reply to a request for remark.

The curbs on exports by India, additionally the world’s second-biggest sugar exporter, might additional elevate benchmark white sugar costs, that are already buying and selling close to 5-1/2 12 months highs, merchants mentioned.

Amongst components underpinning world sugar costs this 12 months are decrease sugar output in Brazil, a number one producer and the largest exporter, and crude oil costs at multi-year highs. Increased crude oil costs encourage sugar mills to divert extra cane to provide ethanol for mixing into gasoline.

Brazil’s sugar manufacturing is ready to rebound in the course of the present season, however with restricted exports from India, merchants don’t count on costs to come back down they usually as an alternative might go increased.

“There’s a want to control exports to keep away from any type of panic out there,” mentioned a senior authorities official with data of the matter.

Whereas the sources anticipated subsequent season’s export cap to be set between 6 million and seven million tonnes, the precise amount might be mounted close to the beginning of the 2022/23 season, they mentioned.

The federal government will take a look at the efficiency of the monsoon earlier than fixing the quota, they added.

Monsoon rains in sugarcane rising areas of

state of Maharashtra, the largest producer within the nation, have been 60% beneath common for the reason that begin of the wet season on June 1, in response to climate workplace knowledge.

New Delhi on Might 24 imposed restrictions on sugar exports for the primary time in six years with a cap for this season of 10 million tonnes.

Report exports within the present season might deliver down inventories to six.5 million tonnes on Oct. 1, when the subsequent 2022/23 season begins, versus 8.2 million tonnes a 12 months earlier, business and authorities estimates present.

Aditya Jhunjhunwala, president of the Indian Sugar Mills Affiliation, a producers’ physique, has requested that the federal government enable mills to export 8 million tonnes of sugar subsequent 12 months, as output might exceed this 12 months’s document 36 million tonnes, in response to a letter seen by Reuters. The affiliation didn’t instantly reply to a request for remark.

The letter additionally urged the federal government for an early choice on subsequent 12 months’s export quota to assist mills money in on agency world costs.

India primarily exports to Indonesia, Bangladesh, Sudan, the United Arab Emirates, Nepal and China.