India's decision to restrict sugar exports will threaten global supply

This South Asian country may limit sugar exports in the new season starting October 1 and this decision will be made soon. They said quotas for some exports could be issued if domestic supplies improve. India records weakest monsoon in 5 years. Any decline in agricultural output will put pressure on Prime Minister Narendra Modi to control food inflation ahead of elections due next month and in 2024. Export restrictions will tighten the market and potentially boost sugar futures prices on the New York and London exchanges. A spokesperson for India's Ministry of Food and Commerce declined to comment on the matter. India introduced a quota system in 2022-23 and limited sugar exports to about 6 million tonnes after late rains reduced output. In the previous crop year, this country exported 11 million tons of sugar. According to a Bloomberg survey of 14 analysts, traders and mills last month, most said India may not export sugar this season due to low output. Two respondents said ...