India is set to ban exports of sugar amid a decline in production and its reluctance to risk any inflationary pressures in the run-up to Lok Sabha elections next year, it is learnt.
Report informs via foreign media that a committee of ministers, according to sources, has recommended that the dispatches of sugar by mills for exports be stopped with “immediate effect”.
The notification for banning shipments is likely to be issued very soon, sources told The Indian Express.
India’s sugar production in the 2022-23 crop year (October-September) is projected at about 327 lakh tonnes (LT), down from the previous year’s 359 LT.
“There is enough sugar at present to meet the estimated domestic consumption demand of 275 LT. But the government does not want to take any chances ahead of elections to both state assemblies this year and the Lok Sabha in March-April 2024,” the sources added.
According to data from the Department of Consumer Affairs, the all-India average retail price of sugar, at Rs 42.24 per kg on Friday, was marginally higher than the level a year ago — of Rs 41.31.
During the 2022-23 fiscal year (April-March), India’s sugar exports were valued at a record $5,770.64 million, as against $4,602.65 million in 2021-22. In quantity terms, exports hit an all-time-high of 110 LT during the 2021-22 sugar season. During the current season, mills have so far dispatched around 58 LT for exports.
“The government has already capped exports at 61 LT for the current season. The ban would, then, effectively apply only on 3 LT, but will have an impact on market sentiment and check any inflationary trend,” the sources added.