India extends ban on sugar exports for another year

India plans to extend its sugar export ban for the second year in a row due to expectations of a decline in sugar cane production, Reuters reports, citing government sources. This could lead to a decrease in world supplies and an increase in sugar prices in New York and London.

It is expected that India will limit exports, as Brazil, the largest sugar producer, cane production will suffer due to drought. India also plans to increase the purchase price of ethanol for oil companies to stimulate its production, as the country aims to increase the share of ethanol in gasoline to 20% by 2025/26 MY.

The government will allow the use of cane juice for ethanol production starting in November and is considering increasing ethanol prices by more than 5% in the new marketing season. This season, which began on October 1, 2023, India has already restricted sugar exports for the first time in seven years, allowing only 6.1 million tons of sugar to be exported, compared to 12.2 million tons last season.

It is expected that in 2024/25 MY sugar production will decline to 32 million tons from 34 million tons this year due to bad weather in Maharashtra and Karnataka.

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Tags: export, sugar, India, restrictions