India’s absence from the world market would be likely to increase benchmark prices in New York and London that are already trading around multi-year highs, triggering fears of further inflation on global food markets.
“Our primary focus is to fulfil local sugar requirements and produce ethanol from surplus sugarcane,” said a government source. “For the upcoming season, we will not have enough sugar to allocate for export quotas.”
India allowed mills to export only 6.1 million tonnes of sugar during the current season to Sept. 30, after letting them sell a record 11.1 million tonnes last season. In 2016, India imposed a 20% tax on sugar exports to curb overseas sales. Patchy rains would cut sugar output in the 2023/24 season and even reduce planting for the 2024/25 season. Local sugar prices jumped this week to their highest level in nearly two years, prompting the government to allow mills to sell an extra 200,000 tonnes in August.
