India is planning to stop sugar
exports in the new season starting next October. According to a report by the
news agency Reuters, the country is making such a plan because the sugarcane
yield has decreased due to a lack of rain.
If India implements their plan,
Bangladesh's cost of importing sugar will increase. However, some of the
country's importers are not worried about this. They say that the news of
India's sugar export ban is a matter of concern, there is nothing to worry
about. Because sugar from other countries will be available. If the government
opens letters of credit (LC) facilities and concessions in duty rates, the
impact of price rise in the international market will be reduced.
The sugar industry is a big business
in India. Around 525 mills produced more than 30 million tonnes of sugar in the
last crushing season, which lasted from October to April. This makes it the
world's largest producer, unseating Brazil. Some 50 million farmers and
millions more workers are involved in sugarcane farming. India is the
world's largest consumer of sugar. According to data from the Indian Sugar
Mills Association, the country's sugar mill produced 268.21 lakh (26,821,000)
tonnes of sugar between October 1, 2019 and May 31, 2020.
On May 24, 2022, the Indian government
announced that India will restrict the export of sugar from June 1, 2022. This
restriction has been ordered to maintain domestic availability and ensure price
stability.
India is the second largest exporter of sugar in the world after Brazil. According to data provided on the website of India's Ministry of Commerce, the country exported 58 lakh tonnes of unrefined sugar during the 2022-23 (April-March) season, while refined sugar exported around 55 lakh tonnes. 81 countries of the world bought Indian sugar (including those who bought at least 1000 tons). However, Bangladesh was the top importer of India's unrefined sugar.
Comment Now