India said on May 24 that it will limit sugar exports to 10 million tons to maintain domestic availability and price stability.
Officials for the world’s top sugar producer and second-largest exporter after Brazil said the move was necessary after export levels rose to a record in the past few months.
The country’s Food Ministry said it would regulate sugar exports from June 1, taking into account the “unprecedented growth in exports of sugar” and the need to maintain adequate domestic stocks.
Sugar exporters will be required to get permission for exports between June 1 and Oct. 31. This will be the first time in six years that India has placed such curbs on sugar.
India exported 7 million tons in fiscal year 2020–2021, up from 5.9 tons in 2019–2020. The ministry said India signed contracts to export about 9 million tons for the current sugar season, of which 7.8 million tons have already been sent out of the country.
Prices of sugar in the domestic market have been “under control” for the past 12 months, according to the ministry, with prices ranging from 3,150 to 3,500 rupees ($41 to $45) per quintal.
“[The] government has been continuously monitoring the situation in the sugar sector, including sugar production, consumption, export as well as price trends in wholesale and retail markets all over the country,” the ministry stated.
U.S. Ambassador to the United Nations Linda Thomas-Greenfield has called on India to reconsider its decision to ban wheat exports, fearing that it may exacerbate food shortages.
“We have seen the report of India’s decision. We’re encouraging countries not to restrict exports because we think any restriction on exports will exacerbate the food shortages,” Thomas-Greenfield said at a press briefing on May 16.
“India will be one of the countries participating in our meeting at the Security Council, and we hope that they can, as they hear the concerns being raised by other countries, that they would reconsider that position.”
