India could cap sugar exports to augment local stocks-sources

Bajaj Hindusthan Sugar

25/03/2022 05:33

By Rajendra Jadhav
    MUMBAI, March 25 (Reuters) - India is considering
restrictions on sugar exports for the first time in six years
and may cap exports at around 8 million tonnes in an effort to
prevent domestic prices surging, government and industry sources
told Reuters.
    Any curbs on exports by the world's second biggest sugar
exporter could lift global sugar prices  LSUc1   SBc1  that have
been supported by lower output in top producer Brazil and firm
crude oil prices, which encourages mills to produce more
sugarcane-based ethanol.
    "Sugar output is going to be a record high, but stocks are
depleting fast because of exports. Uncontrolled exports could
create scarcity and local prices could spike during festive
season," said a senior government official with knowledge of the
matter who asked not to be identified.
    Cashing in on rising global sugar prices, Indian mills have
contracted to export around 7 million tonnes of the sweetener so
far in 2021/22 marketing year ending on Sept. 30, dealers said. 
    India's Ministry of Commerce and Industry did not
immediately respond to a request for comment.

 (Reporting by Rajendra Jadhav; Editing by Sanjeev Miglani and
Lincoln Feast.)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))