India, the world’s largest sugar producer, has extended its ban on sugar exports for another year until October 2023, Reuters reports.
According to the country’s Directorate General of Foreign Trade (DGFT), the measure is extended from 31 October 2022 to 31 October 2023, or until further orders.
For the first time in six years, New Delhi introduced the restriction in May for it to make a dent in domestic prices due to rising demand abroad. The decision limited exports to 10 million tonnes.
In the context of the global energy crisis, major exporters of the commodity have begun converting sugar cane into biofuel for automobiles. At the same time, sugar production and market supply have declined.
Local media report that India’s sugar exports rose to 8.6 million tonnes by May in the 2021-2022 marketing season that ended in September.
Earlier this month, government and industry representatives said India is expected to produce a record sugar crop in 2022, reports The Economic Times.
Moreover, the export quota for the current season could be released next week, trade and government sources told Reuters. According to the Indian Sugar Manufacturers Association, the country could export up to nine million tonnes of sugar in the 2022-2023 season.
In addition, the Asian nation is expected to ship some 4.5 million tonnes of sugar for ethanol production. Also called ethyl alcohol, this compound, in a mixture with gasoline or diesel, is used as a fuel for cars. As a result, India could produce about 36.5 million tonnes of the product in the 2022-2023 season, 2 % more than in the previous period.
