In order to ensure supplies in their own country, India will also restrict its sugar exports after the wheat export ban.
After the wheat export ban, India also restricted its sugar exports. As the world’s largest sugar producer and second largest exporter after Brazil announced on Tuesday, sugar exports for the current marketing year, which runs until September, will be capped at ten million tons.
India wants to ensure “native availability”.
According to the government in New Delhi, the background is that “local availability and price stability” should be guaranteed. According to the Ministry of Food, sugar exports are expected to reach a new high this marketing year. Accordingly, contracts for around nine million tons have been signed and 7.8 million tons have already been shipped.
In mid-May, India imposed an export ban on wheat, which only provides for exceptions with the express approval of the government. The reason for this is that the Indian government wants to secure the wheat supply in its own country – because a significant decline in this year’s harvest is expected as a result of an extreme heat wave.
After the announcement of the export ban, the already high wheat price on the world markets due to the Russian attack on Ukraine continued to rise. There is also growing concern about increasing protectionism.
