The government of India announced an extension of export restrictions until October 2023, although the country’s largest producer of the sweetener is still anticipated to set a quota for this year’s international sales.
India, which is also the world’s largest sugar consumer, has banned exports this year till the end of the month to prevent an increase in domestic prices in the wake of record exports.
In response to the government’s late Friday notice, the National Federation of Cooperative Sugar Factories Ltd.’s Prakash Naiknavare said: ‘The notification merely extends the government’s policy of keeping sugar exports in the restricted category, but this decision does not mean that the government will not allow sugar exports in 2022/23.’
According to trade and government sources, the export quota for the current season could be announced the next week.
‘ Reuters reported last month that the government was ready to approve 5 million tonnes of sugar exports in a first batch for the new marketing year that started on October 1.’
The second tranche of sugar exports from India are anticipated to be around 3 million tonnes, bringing the total amount exported this year to roughly 8 million tonnes.
The Indian Sugar Mills Association, a consortium of manufacturers, estimates that India might export up to 9 million tonnes of sugar in the season 2022–2023.
Taking advantage of competitive global prices For this season, traders have already begun concluding agreements to ship raw sugar.
Due to unseasonal rains in the early part of this month, traders are working harder to close export deals to make up for the delayed start to this year’s ‘sugar production’.
India is anticipated to generate roughly 36.5 million tonnes of the sweetener in the 2022–23 season, up 2% from the previous season, after diverting about 4.5 million tonnes of sugar for ethanol production.
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