Now it is expected that the Indian government will impose a stock limit on the sugar trade. It has been said that India might shift the sugar exports to a prohibited category because of the weak monsoon. The EI Nino weather patterns the leads so that it can decline in sugar production. The center might impose a stock limit on the sugar trade. The central government is now going to impose a limit on the stock doesn’t the sugar trade if it does now disclose the inventories by 17 October 2023, Tuesday. This news has been recently announced and has sent shockwaves in the entire market. So to learn everything read this article till the end.
It has been expected that India is now going to shift the sugar exports to the prohibited category from restricted for the October to September (2023-24) season. The government has officially declared that it has had a big impact on the weakest monsoon in the five years of sugarcane crops in the major producing states of Karnataka and Maharashtra. Officials have recently said that the sugar mills are currently applying for the export quota which is under the restricted category. But it has also been reported that the prohibited category means the total export ban. Scroll down.
According to the source, the output of sugar is now expecting a big fall to around 30 million tonnes (mt) in the sugar season of 2023 to 2023 against the domestic consumption of around 27.5 to 28 mt because of the EI Nino is compromising monsoon rain in August 2023. It is said that the EI Nino is expected to strengthen from 2023 to 2024 which can lead to the intensification of the dry situation at the time of the upcoming sugar season. This might become the reason for the decline in the production of sugar at the time of the 2024 to 2025 season.
The weather pattern of EI Nino has made August the driest in some of the century. The rainfall in this month was a total of 161.7 mm which is one of the lowest after 1901. As per the record at the time of the 2021-22 season, India surpassed Brazil and became the world’s largest sugar producer and also became the second-largest exporter. At the end of the 2022-23 crop year, the local sugar mills have just exported a total of 6.2 mt of sugar. During the season of 2-22 to 2023, India produces almost 32.7 to 32.8 mt of sugar after it diverts 4.3 mt of the century for ethanol production. And it closed the 2022-23 season with 5.5 to 6 mt in stocks.