New Delhi: The Centre is likely to restrict sugar exports to 10 million tonnes for the first time in six years in order to maintain enough domestic supply and prevent rise in prices, quoting official sources, the PTI reported.
Mills have contracted for export of 9 million tonnes of sugar so far in the FY21-22 marketing year (October-September). Out of which, 7.5 million tonnes of the sweetener has been exported, the sources added.
India is the world's second-largest producer and exporter after Brazil. "A notification on sugar export restrictions will be issued in a day or two," the sources said.
A closing stock of 6 million tonnes is required at the end of September 2022, to meet the domestic demand in the first two months of the new 2022-23 marketing year. Also, the country's priority is first to meet the domestic requirement, keep prices under check and allow export only if there is surplus quantity, the sources said.
Restrictions are likely to be imposed months ahead of the closing of the current marketing year, so that the contracted quantity of sugar is shipped smoothly, the sources added.
In 2020-21, the country exported 7 million tonnes of sugar. The major importing countries are Indonesia, Afghanistan, Sri Lanka, Bangladesh, UAE, Malaysia, and African countries.
Earlier this month, India took the world by surprise when it curbed exports of wheat after a heatwave destroyed some crops, causing a jump in benchmark prices. Steps by governments to ban sales abroad, particularly in Asia, have ramped up in recent weeks since Russia’s invasion of Ukraine sparked a further surge in already-soaring global food prices, Bloomberg reported.
With inputs from agencies