India expects to ban sugar exports next season from October, halting shipments for the first time in seven years.
Citing Indian government sources, foreign reports state that the country’s government took this step because the sugarcane harvest has decreased due to lack of rainfall.
India’s absence of sugar from the world market is believed to have an impact on sugar prices globally.
The move also fueled fears of further inflation in global food markets.
“Our primary focus is to meet domestic sugar requirements and produce ethanol from surplus sugarcane,” an Indian government source said.
“For the next season, we don’t have enough sugar to allocate for the export quota.” He has said.
India allowed mills to export only 6.1 million tonnes of sugar in the current season till September 30, after allowing the sale of a record 11.1 million tonnes last season.
In 2016, India imposed a 20% tax on sugar exports to curb foreign sales.
It has not rained this time in the states where about 50% of India’s total sugar production is processed.
