India is likely to cap sugar exports, tightening global supplies

Published 2023년 1월 31일

Tridge summary

India is likely to limit its sugar exports to 6.1 million tonnes this season due to concerns over tight global supplies, which have reached a six-year high. This is a reduction from the initial forecast of nine million tonnes by the Indian Sugar Mills Association. The decision aims to ensure domestic supply and stability, as the country's production is projected to decrease to 34 million tonnes this season. The final decision on exports will be made in February.

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Original content

NEW DELHI (Jan 31): India, the world’s second-biggest sugar grower, will likely cap exports at a little over six million tonnes this season, exacerbating concerns about tight supplies that have pushed global prices to a more than six-year high. Exports will total 6.1 million tonnes in the current crop year that started Oct 1, according to the Indian Sugar Mills Association, which cut its forecast from nine million. This may signal that the government — which already allowed six million tonnes to be shipped this season — is unlikely to approve additional volumes. Global sugar prices climbed to the highest since late 2016 this week, as traders bet that weaker production in India will prompt the government to restrict exports. The country wants to safeguard domestic supply and ensure prices remain stable. Food Secretary Sanjeev Chopra has said that a decision on exports will be made in February, after taking into account local output and demand. India’s production may decline to 34 ...

Source: Theedgemarkets