India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices, potentially capping this season’s exports at 10 million tonnes, a government source told Reuters on Tuesday.
India is the world’s biggest sugar producer and the second biggest exporter behind Brazil.
Following the news, sugar stocks on Dalal Street took a battering, with most dropping over 5%.
Just In | After wheat, #India is set to restrict #sugar exports as a precautionary measure, suggest reports.M Man… https://t.co/kUdsEr1JYN— ET NOW (@ETNOWlive) 1653381678000
Following Russia’s invasion of Ukraine, the prices of food have skyrocketed and governments across the world have resorted to taking measures to protect domestic prices of certain commodities.
Malaysia will halt exports of 3.6 million chickens a month from June 1, Indonesia recently temporarily banned palm oil exports, India restricted wheat exports, and Serbia and Kazakhstan have imposed quotas on grain shipments.
Heat waves have withered fields in India, prompting a government order dated May 13 to restrict shipments and safeguard domestic supply. India is making exceptions on export restrictions only for prior commitments made by private traders through irrevocable letters of credit, and for exports to countries that require wheat for food security needs, based on the requests of their governments.
Indonesia too had halted the exports of palm oil on April 28 only to lift it earlier this week.
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