Informist, Saturday, May 21, 2022

By Preeti Bhagat and Kavita Desai

MUMBAI - The government is likely to restrict exports of sugar once it crosses 10.0-10.5 mln tn in the 2021-22 (Oct-Sep) season to ensure ample domestic stocks, a senior government official said today.

"...working on a structure to put in place a mechanism where whoever wants to export first has to get it approved by the government," the official said. "We don't want a situation like wheat."

Last week, the government banned exports of wheat as prices had shot up in the domestic market amid strong overseas demand.

"We don't want closing stocks (of sugar) for the season to fall below 6.0-6.5 mln tn," the official said.

This season, India's sugar exports are likely hit record high figure of 9.5-10.0 mln tn. So far, mills have signed deals to export over 8.5 mln tn of the sweetener, of which 7.1 mln tn has been shipped, data from the Indian Sugar Mills Association showed.

Exports surged this season amid high domestic production and firm prices in the overseas markets.

India's sugar production in 2021-22 is seen at 35.0-35.5 mln tn, up from 31.1 mln tn last season.

India is the world's second-largest producer of sugar, after Brazil.  End

Edited by Arshad Hussain

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