NEW DELHI: India, the world’s second-largest sugar producer, has banned exports until end-September, according to an official notice, as the government seeks to protect local supplies.
The move follows a cut in output estimates from a major millers’ group. India’s gross sugar production is forecast at 32 million tonnes in the season ending Sept 30, down from an earlier projection of 32.4 million tonnes, the Indian Sugar & Bio-Energy Manufacturers Association said.
The country’s next harvest, which starts around October, could be also affected by a lower-than-average monsoon. The annual rains starting next month are expected to be curbed by the El Nino weather pattern.
The country is also a major fertiliser importer and is grappling with a spike in global prices driven by the war in Iran.
The government in April had ruled out curbing overseas sales. However, the notice reversed those plans, prohibiting exports aside from limited exceptions, including for ships already loading.
The global market has been awash in supply, and benchmark sugar futures in New York reached a five-year low earlier this year.
However, some analysts have trimmed their outlooks for a surplus in the 2026 to 2027 season. Prices are now trading about 15% above those levels. The war in Iran has also stoked global demand for biofuels, which some countries make from sugar.
India’s sugar exports have been a major swing factor in the global market in recent years. The country started limiting sugar exports following a poor crop in 2022 to 2023, issuing annual quotas for permitted sales.
This season, the government permitted an initial 1.5 million tonnes for export in November and expanded that by 500,000 tonnes in February. — Bloomberg
