Bloomberg reported that due to supply chain disruptions in Brazil, and India will reduce its sugar export quota from 2022 to 2023, the global sugar market will deteriorate further, which will contract the global sugar supply. Global sugar prices are expected to rise.
Excessive rainfall in Brazil affects the speed of sugar cane crushing. India will carry out a sugar export restriction which reduces sugar export quotas, tightening the global sugar supply.
India's Sugar Export Restriction Will Extend Till 31st October 2024
The Indian government says sugar mills need to complete their first sugar exports by May 31, 2023. Sugar mills across the country have reportedly been informed of their individual export quotas.
The first batch of export quotas is about 6 million tons, while the second batch is about 3 million tons. India’s sugar exports will reach 9 million tons by October 2023. The sugar exports in 2021-2022 were about 11.2 million tons, a total reduction of about 20 percent.
This measure ensures the sugar supply in the Indian domestic market. The sugar export restriction has been extended to October 31 next year. This restriction does not apply to the export of sugar to the EU and the United States under the quota.
Video Credit: The Economic Times