Business News Asia
The Indian government introduced measures to limit sugar exports on Wednesday (June 1) to stabilize domestic sugar prices.
From June 1 to October 31, Indian exporters must obtain a government license before they can export sugar abroad.
The Indian government has implemented sugar export restrictions for the first time in six years to combat high sugar prices and ensure there is enough sugar for domestic consumption. Indian companies exported large quantities of sugar to the world market.
India will limit sugar exports to 10 million tonnes this season. The measure is expected to allow India to stock some 6 million tonnes of sugar as of Oct. 1, the start of the 2022/2023 season, which will be enough to meet the festive season’s consumption demand in the 4th quarter of 2022.
The announcement of India’s restrictions on raw sugar exports will increase the vigilance of the global sugar market, which will have to wait and see whether India’s restrictions on raw sugar exports will affect world sugar prices by the end of the third quarter.
The latest price (June 2) is $19.42 per pound, up more than 15% from the same period last year.
India is the world’s largest sugar producer and second largest exporter after Brazil.