The government will impose an export ban in the first week of November to control sugar prices

Ahmedabad: India may ban sugar exports during the next crushing season starting from October 1. A government official said in a report on September 28 that a notification in this regard is expected to be issued in the first week of November. The sugar season starts on October 1 every year and ends on September 30 every other year.

India exported a record 11 million tonnes of sugar in FY2022. However, in FY2023, the country limited the export volume to control sugar prices and ensure supply.

At the beginning of the financial year 2023 sugar year, the government limited the export of sugar to about 6 metric tons. However, with rising prices, this quota is also being phased out to keep prices low in the domestic market,' an official said in a media report.

Maharashtra and Karnataka, which account for half of the country's sugar production, have received less than normal rainfall during this monsoon season. Rainfall was also 50 percent below average in many of the top sugarcane producing districts.

However, rainfall has improved recently. Rainfall across the country was 10 percent below normal till August 31, which reduced to 5 percent on September 25. However, the fear of decline in sugarcane production cannot be eliminated.

Niti Aayog member Ramesh Chand recently expressed concern about sugarcane production. He said that India has a 'good production' of sugarcane, but a large part of it is used to make ethanol.

India is the world's second largest sugar producer and major exporter. However, in recent years, sugarcane crops are increasingly being used for ethanol production. Apart from this, India is also emphasizing on setting up a fuel plant for it.