Sweet Shock: Export Ban Shakes India's Sugar Industry

The Indian government's abrupt decision to halt sugar exports has alarmed industry stakeholders, who predict this could destabilize domestic prices, further inflating sugar factories' debts while impacting cultivators. Aimed at increasing domestic availability and controlling prices amidst inflation and Middle East tensions, the ban is in place until September 30.

Bhairavnath Thombre, head of the West Indian Sugar Mills Association, criticized the move, stating that it has already led to a drop in local prices. He warned that the sudden ban could tarnish the global reputation of Indian sugar factories, risking negotiated export deals with countries like Sri Lanka, Bangladesh, Afghanistan, Nepal, and Arab nations.

Thombre urged the government to enhance sugar-based ethanol procurement, suggesting an increase in ethanol use in petrol to 30 percent. Jayprakash Dadegaonkar, former leader of the NFCSF, argued that the government lacks a cohesive sugar industry policy, having raised the Fair and Remunerative Price multiple times, thus weakening industry financial stability.

(With inputs from agencies.)