India might be banning exports of sugar to other countries soon. Sugarcane cultivation faced a major loss due to insufficient rainfall and the lack of enough yields of sugarcane is the significant reason behind the anticipated decision. India is likely to finalise the decision to halt sugar exports in the upcoming season starting in October. Here’s all you need to know about the probable halt.
All You Need To Know About The Likely Chances Of India Banning Sugar Exports
Expectations are that the mills will be banned from making any exports of this essential ingredient from October, according to a report by Reuters. If India bans sugar shipments in other places, this will be the first time in 7 years to do so. This probable ban on sugar exports can turn out to be a major reason for increasing the benchmark prices in London and New York. In fact, this may lead to a bad impact on the already-inflated global food markets. There are chances for these markets to witness a rise in inflation with the halt of Indian sugar exports.
Maharashtra and Karnataka are the prominent Indian states that contribute to a major part of the country’s sugar production. The lack of sufficient rainfall during this monsoon season affected the sugarcane production. These two states received 50 per cent below average rainfall this rainy season, according to the weather department.
The Next Season Will Not Have Enough Production To Sustain Both Local And Global Needs
In the last 2 years, India has exported sugar in huge quantities, stated a government source. But now exports in similar volumes are uncertain. In the upcoming 2023-24 season, the sugar production of India is likely to witness a drop of 3.3 per cent to 31.7 million tonnes. In the ongoing season, India has let the sugar mills export 6.1 million tonnes of sugar till 30 September 2023. This is a significant drop in export volume in comparison to the previous season’s 11.1 million tonnes of sugar.
Right now, the priority of the government is to take care of the sugar requirements of locals. Along with this, the government also aims to produce ethanol from the extra sugarcane, a government source shared with Reuters. The government is working to have sufficient supplies for the country at stable costs.
What are your views on this likely plan?
Cover Image Courtesy: Canva