Sugar Export Ban: After wheat and rice, now the central government is preparing to ban the export of sugar as well. A decision can be taken to ban the export of sugar mills in the new season starting from the month of October. If this happens, this will be the first time in seven years that the export of sugar will be banned.
There is a possibility of the lack of rain in this monsoon affecting the production of sugarcane. In such a situation, the government is preparing for the coming festive season and the assembly elections to be held later this year and in 2024. Lok Sabha elections can ban the export of sugar.
India has allowed only 6.1 million tonnes of sugar exports till September 30 this year, while last season saw 11.1 million tonnes of sugar exports. If India decides to ban sugar exports, then there can be a sharp jump in the prices of sugar worldwide. New York and London benchmark prices may see a jump where sugar is already trading at multi-year highs. If this happens, a sharp jump in food inflation can be seen across the world.
Maharashtra and Karnataka, where sugarcane is cultivated, there has been a 50 percent reduction in rainfall during the monsoon. In these two states, 50 percent of the country’s raw sugar production is produced. Due to the lack of rain, the yield will be less in this season, but in the next season, sugarcane cultivation can be affected. India’s sugar production is estimated to decline by 3.3 per cent to 31.7 million tonnes in 2023-24 season.
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