India bans wheat exports and limits sugar exports

India is limiting sugar exports to 10 million tons to maintain domestic supply and stabilize prices. The move follows an export ban on wheat, which comes amid signs of a global sugar shortage.

India is the world's second-largest producer of sugar after Brazil, the world's largest consumer of sugar and the world's second-largest exporter of sugar, according to the Indian Sugar Trade Association. It is the first time in six years that India has restricted sugar exports.

India exported 7 million tons of sugar in fiscal 2021/2022 that ended March, up from 620,000 tons in fiscal 2017/2018.

India is estimated to produce more than 30 million tons of sugar this year, with domestic consumption estimated to be about 28 million tons and domestic stockpiles estimated to be about 8 million tons.

Currently, about 9 million tons of sugar export contracts have been signed between June and October, and 7.8 million tons have already been exported, the Indian government said.

Sugar and exporters said they must obtain government approval to export from June 1.

India's sugar consumption spikes from September to November, a major festival season. Sugar prices remain relatively stable, but retail inflation hit an eight-year high of 7.8 percent in April. India has announced tax cuts on gasoline, diesel and coal to curb rising inflationary pressure.

India announced earlier this month that wheat exports to food-poor countries should only go through government channels. India exported 1 million tons of wheat in April.

Export regulations are aimed at curbing domestic inflation. World wheat prices have risen more than 40 percent since the beginning of the year. Meanwhile, India's wheat crop has been hit by a record heat wave.

Date: 2021-07-01

Reporter: 서화목