Sugar Exports
India has decided not to allow any more sugar exports for now on concern that weaker production will threaten domestic supplies. That means there won’t be additional exports beyond the 6 million tons India has already allowed this season.
The government has not approved new sugar shipments after meeting with some cane officials from major producing regions this week. Prices have since retreated as traders shift their focus to burgeoning supplies from Brazil and Thailand, the other major shippers.
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Meanwhile, India’s biggest sugar-producing region of Maharashtra has cut its production estimate to 12.4 million tons this season, compared with a previous forecast of 12.8 million tons. Shekhar Gaikwad, the state’s sugar cane commissioner, said unseasonable rains have reduced yields.
Average cane yields in Maharashtra this season are estimated at 87 tons per hectare, compared with 98 tons a year earlier, he said.
Sugar production was 13.8 million tons in the previous crop year. The Indian government will assess domestic supply and demand again in March, when cane crushing nears its end, before taking a call on exports.
The global sugar market has anticipated the move. Prospects for lower India exports sent prices soaring early this month to the highest since 2016, threatening more inflationary pain by increasing the cost of making pastries, candy, and soft drinks.
