“India, the world’s second-biggest sugar producer, extended its export restrictions in a renewed bid to protect domestic supplies, a move that’s likely to tighten the global market and raise costs for the food industry.
The government will continue its curbs on overseas shipments of the sweetener beyond Oct. 31, according to a notice from the Directorate General of Foreign Trade on Wednesday, confirming a Bloomberg News report last week.
India introduced a quota system in 2022-23 and limited sugar exports to about 6 million tons after late rains cut production, compared with an unrestricted 11 million tons a year earlier. It’s unclear at this stage the size of the quota, if any, for overseas shipments that will be allocated to millers for 2023-24.
Raw sugar futures are hovering near their highest level since 2011 on concerns about faltering supplies from India and Thailand. While the ban may cool India’s domestic prices, it’s a blow to global manufacturers of everything from fizzy drinks to chocolate and baked products.”