India decided to limit export sugar up to 10 million tonnes in order to control domestic prices. Export restrictions apply to the marketing season which lasts until September 2022.
Launch CNNThe Indian government said the decision was made to maintain domestic sugar stocks after unprecedented growth in exports last year and this season.
This milestone was reached when annual retail inflation in India reached 7.8% in April 2020. This figure is the highest level of inflation in India for nearly eight years. This decision is also another sign of the rise of food protectionism in the world and the consequences of the Russian invasion of Ukraine.
Sellers have also been advised to seek a “special permit” from authorities for any sugar exports between June 1 and October 31.
During the current period, which runs from October 2021 to September 2022, Indian sugar mills have signed export contracts of around 9 million tons.
Over the past 12 months, India, which is the world’s largest sugar producer and the second largest exporter after Brazil, shipped 7 million tonnes of sugar overseas. This figure is the highest in recent years.
Meanwhile, Indian Commerce Minister Piyush Goyal said their export regulations should not affect global markets. Indeed, India will continue to allow exports to vulnerable countries.
India’s decision to ban sugar exports was announced after the country banned wheat exports. The decision to ban wheat exports was prompted by a heat wave that damaged crop yields, pushing domestic commodity prices to record highs.
[Gambas:Video CNN]
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