India to ban sugar exports for the first time in seven years

Factories are expected to ban sugar exports in the coming season from October and halt shipments for the first time in seven years as a lack of rain in India has reduced sugarcane yields.

Three government sources made the statement.

In 2016, India imposed a 20 percent tax on sugar exports to restrict sales abroad.

India’s failure to export sugar to the world market is likely to cause sugar prices on the SBc1 New York and LSUc1 London stock exchanges, which are trading at their highest levels in recent years, to rise further and raise concerns about rising inflation in world food markets.

A government source, who did not want to be named due to official rules, said: “Our main goal is to meet local sugar needs and produce ethanol from surplus sugarcane. We won’t have enough sugar to allocate for export quotas next season.” (Reuters)