Page 3 - Sugar Export News Today

"The President of ISMA, Aditya Jhunjhunwala, says that there is currently no ban on sugar exports in India. He mentioned that the country has enough sugar production, with a surplus of 4 million tonnes. Jhunjhunwala emphasized that the government and industry will wait until the end of September to assess the final crop numbers before making any decisions. He also mentioned that the current sugar prices in India are lower compared to international prices."

The Indian government has set a minimum monthly sales quota for sugar mills at 90% of their allocated quota to prevent distortion of the domestic sugar market. The move aims to keep sugar prices stable ahead of the festival season and prevent accumulation of cane price arrears for farmers. Sugar prices have risen in recent months but have been stable for the past week. The government has the option to take further measures if prices increase.

The world has become increasingly dependent on sugar exports from the South Asian nation as global supplies tighten. Uneven rainfall across Indias agricultural belts has stoked concern that sugar production will fall short, potentially dropping for a second straight year in the season starting October.

India is expected to play a smaller role in the global sugar export market due to its expanding ethanol program, according to a report by research firm BMI. The countrys goal of achieving increased ethanol blending in gasoline, which will reduce carbon emissions, is leading to the development of additional capacity to produce ethanol in India.

The sugar marketing year runs from October-September.

Following an exponential rise in price, the government banned sugar exports with effect from June 1 to October 31, 2022.

The south Asian country restricted exports through the end of this month in May to contain a rise in domestic prices following record exports.

Exports of excess sugar would also support the preservation of domestic sugar prices, improving the mills liquidity position.

In late May, the Centre had decided to cap sugar exports at 10 million tonnes in the 2021-22 marketing year (October-September) to maintain domestic availability and price stability.

The government had imposed curbs on sugar exports beyond 10 MMT from 1 June to boost local availability