India extends export restrictions on vital goods for another year
On Friday evening local time, the Indian government issued a notice saying that it has extended sugar export restrictions for one year to October 2023 to ensure its domestic supply. It is worth noting that the export restriction of sugar does not mean a ban on export, and the Indian government will still give certain export quotas to overseas sellers.
India, the world’s largest sugar producer and the second-biggest exporter after Brazil, dashed market expectations for the lifting of export curbs, which could push global sugar prices higher again.
After the conflict between Russia and Ukraine, international commodity prices have risen sharply, and Indian prices have also risen steadily. Domestic sugar prices are trending higher in India, driven by higher prices for diesel fuel and fertilizers.
In order to ensure domestic sugar supply and price stability, the Indian government announced on June 1 that it will impose total export restrictions on domestic sugar (including raw sugar, refined sugar and white sugar). The measure was supposed to end at the end of October, but the Indian government unexpectedly extended it.
Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Mills of India, believes that the latest notification from the government only extends the export restriction policy, but the decision does not mean that the government will not allow sugar exports in 2022/23.
Specific information on export quotas for the latest quarter may be released next week, the sources said. According to media reports, in the new marketing year starting on October 1, the first batch of sugar will be allowed to export 5 million tons, and the second batch of sugar exports will be about 3 million tons, bringing the total sugar export volume for the next marketing year to about 800 million tons. tons.
However, according to the Indian Sugar Mills Association, in 2022/23, India will produce about 36.5 million tons of sugar, an increase of 2% year-on-year. In 2021/22, India’s sugar production will be about 35.8 million tons. Meanwhile, 9 million tonnes of sugar will be exported in 2022/23.
At present, the Indian Sugar Mills Association is calling on the government to announce the export quota for this year as soon as possible and remove the export restrictions, and believes that there is little reason to continue to restrict exports.
The Indian Sugar Mills Association said that in fact, due to the short window period of India’s sugar exports, the global sugar price may be suppressed after Brazil’s crushing. At that time, the new supply from Brazil will hit the market, which is not conducive to Indian producers and damages all parties. interests, and therefore called for the removal of export restrictions.