India bans sugar exports until September to curb domestic prices amid West Asia conflict
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India on Wednesday banned exports of raw, white and refined sugar with immediate effect until September 30, as the government moved to contain domestic prices and protect supplies amid uncertainty linked to the war in West Asia, Reuters reported.
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India is the world’s second-largest producer of sugar and its largest consumer, with annual output valued at more than Rs 1 lakh crore.
The government’s decision came after India raised import tariffs on gold and silver to 15% from 6%, in an effort to reduce imports, ease pressure on foreign exchange reserves and support the weakening rupee.
In a notification issued on Wednesday, the Directorate General of Foreign Trade said sugar exports had been moved from the “restricted” category to “prohibited”.
The move reversed the government’s earlier decision to allow mills to export 1.5 million metric tonnes of sugar on expectations that production would exceed domestic demand.
The notification also said that exports already in the pipeline would still be allowed under certain conditions. Shipments can proceed if loading had begun before the notification was issued, if vessels had already berthed or anchored at Indian ports, or if the sugar had already been handed over to customs authorities.
Exports to the European Union and the United States under existing quota arrangements will continue, it added.
Exports will also be allowed...