India is expected to ban sugar export factories in the next crop year, starting next October.
India's above move took place for the first time in 7 years, in the context of a lack of rain reducing sugarcane productivity.
India's absence from world markets is likely to increase benchmark prices in New York and London markets - where sugar is trading around multi-year highs. This issue raises concerns about the risk of increased inflation in the global food market.
Indian government sources said that New Delhi's main focus is to meet domestic sugar demand and produce ethanol from surplus sugarcane. In the upcoming crop year, it is likely that India will not have enough sugar to allocate for export quotas.
In 2016, India imposed 20% tax on sugar exports to limit overseas sales.
According to the Indian Weather Service, rainfall in the top sugarcane growing districts of Maharashtra and Karnataka - which account for more than half of India's total sugar production - was up to 50% lower than the average for the year. now.
In addition, erratic and scattered rain will also reduce sugar production in the 2023-2024 crop year and even reduce planting in the 2024-2025 crop year.
It is forecast that India's sugar output may decrease by 3.3% to 31.7 million tons in the 2023-2024 crop year.
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