India has extended the ban on sugar exports for a year till October 2023.
The South Asian country in May restricted exports till the end of this month to contain the rise in domestic prices after record exports.
India, the world's largest sugar producer, has extended restrictions for sugar exports by a year till October 2023, the government said in a notification on Friday.
According to Reuters news agency, the South Asian country in May restricted exports till the end of this month to prevent a rise in domestic prices after record exports.
The government official said India is expected to produce a record sugar crop this year, which could allow New Delhi to export up to 8 million tonnes.
India's domestic sugar consumption is estimated to be around 27.5 million tonnes and mills are expected to use 4.5 million tonnes of sugar for ethanol production in the 2022-23 season. The mills will set aside at least 6 million tonnes of sugar as their annual carryover stock.
Traders have already signed deals to export 400,000 tonnes of raw sugar for the 2022/23 season to capitalize on attractive global prices.
India, which has been trying to rein in inflation from a multi-year high, recently banned wheat exports, curbed sugar exports and allowed duty-free imports of soy oil and sunflower oil.
In the current marketing year, India has restricted sugar exports to 11.2 million tonnes to reduce domestic prices after mills sold record volumes in the global market.
The sugar season generally begins from October to September, while the sugarcane crushing season generally begins in October-November and continues till mid-April.
The initial balance of sugar in India in the last few years was between 8-10 million tonnes, however, it is expected to be 6 million tonnes in the 2022-23 season.
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