After wheat, India restricts sugar exports due to food crisis | Economy

India will limit its sugar exports to ten million tonnes in the current season and maintain its availability and price in the country.

This decision follows a similar measure affecting wheat and comes amid signs of a tight global distribution.

According to the All India Sugar Trade Association, India is the second largest sugar producer in the world after Brazil and the largest consumer. In addition, it is the second largest exporter, and sales overseas limits will be the first in six years.

India broke its export record of seven million metric tonnes in the financial year 2021-2022 ending March, compared to 620,000 tonnes in 2017-2018.

Although estimates vary, the country is expected to produce more than 30 million tonnes during this growing season, while the estimated consumption is expected to be around 28 million tonnes, while the internal reserve is about eight million tonnes.

During the current sugar season from June to October, contracts for export of about nine million tonnes have been signed and 7.8 million have already been shipped, the government said in a statement.

The note further states that from next month, sugar mills and exporters will need government approval to sell their products outside the country.

Sugar consumption skyrocketed during the main festival season from September to November.

The price of sugar is relatively stable, but retail inflation rose to 7.8% in April, the highest in eight years. The government has announced tax cuts on petrol, diesel and cooking coal to ease inflationary pressures.