![\"India](\"https:\/\/c.ndtvimg.com\/2023-08\/c74vauq8_sugar-cane-india-reuters_625x300_24_August_23.jpg\"\/ "\\"India")
<\/div>\nIndia allowed mills to export only 6.1 million tonnes of sugar during the current season to Sept. 30.<\/p>\n<\/div>\n
Mumbai\/New Delhi: <\/b><\/p>\n
India is expected to ban mills from exporting sugar in the next season beginning October, halting shipments for the first time in seven years, as a lack of rain has cut cane yields, three government sources said.<\/p>\n
India’s absence from the world market would be likely to increase benchmark prices in New York and London that are already trading around multi-year highs, triggering fears of further inflation on global food markets.<\/p>\n
“Our primary focus is to fulfil local sugar requirements and produce ethanol from surplus sugarcane,” said a government source who asked not to be named in line with official rules. “For the upcoming season, we will not have enough sugar to allocate for export quotas.”<\/p>\n
India allowed mills to export only 6.1 million tonnes of sugar during the current season to Sept. 30, after letting them sell a record 11.1 million tonnes last season.<\/p>\n
In 2016, India imposed a 20% tax on sugar exports to curb overseas sales.<\/p>\n
Monsoon rains in the top cane growing districts of Maharashtra and Karnataka – which together account for more than half of India’s total sugar output – have been as much as 50% below average so far this year, weather department data showed.<\/p>\n
Patchy rains would cut sugar output in the 2023\/24 season and even reduce planting for the 2024\/25 season, an industry official, who declined to be named, said.<\/p>\n
Local sugar prices jumped this week to their highest level in nearly two years, prompting the government to allow mills to sell an extra 200,000 tonnes in August.<\/p>\n
“Food inflation is a concern. The recent increase in sugar prices eliminates any possibility of exports,” said another government source.<\/p>\n
Retail inflation in India jumped to a 15-month high of 7.44% in July and food inflation to 11.5% – its highest in over three years.<\/p>\n
India’s sugar production could fall 3.3% to 31.7 million tonnes in the 2023\/24 season.<\/p>\n
“We’ve allowed mills to export large volumes of sugar during the past two years,” said the third government source. “But we also have to ensure sufficient supplies and stable prices.”<\/p>\n
India surprised buyers last month by imposing a ban on non-basmati white rice exports. New Delhi also imposed a 40% duty last week on exports of onions as it tries to calm food prices ahead of state elections later this year.<\/p>\n
A Mumbai-based dealer with a global trade house said lower output in Thailand was also expected to reduce shipments and major producer Brazil would alone not be able to fill the gap.<\/p>\n
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n<\/div>\n