• According to a government official who spoke on the condition of anonymity, India is unlikely to loosen its limits on sugar exports until at least October, and any consideration of the ban will come only after assessing the state of planting for the upcoming season.
• India, the second-largest sugar producer in the world, appropriately predicted a smaller crop due to irregular monsoon rains and extended a restriction on sugar exports, initially imposed in June 2022, into October 2023. The necessity to monitor domestic prices led to the decision.
• But despite restrictions on outbound shipments, the average retail price of a kilogram of sugar at Rs 44.41 as on June 30, 2024, was actually slightly higher than the Rs 42.74 seen on the same day last year.
• “The rain forecast is good so far, but figures on plantation will decide which way the review will go. On sugar there won’t be an immediate review. The ban has helped limit the price rise on items. Without export curbs, prices may have been much higher than what we see now,” the official added.
• A report by the US Department of Agriculture’s Foreign Agricultural Service back in April said that India’s sugar production in marketing year 2024/2025 (October/September) is expected to reach 34.5 million tonnes against a forecast of 34 million tonnes in the current cycle.
• However, the country’s sugar exports are projected to decrease from 4.6 million tonnes to 3.7 million tonnes, largely due to anticipated government restrictions aimed at ensuring domestic demand is met and the diversion of some sugar for ethanol production, the report said.
• India’s sugar exports rose 291 percent from $1,177 million in 2013-14 to $4,600 million in 2021-22. Shipments in value terms in FY22 alone jumped 65 percent over the previous year.

 

Source: moneycontrol