Sugar export ban raises industry concerns over India’s global credibility
India’s sudden sugar export ban has triggered criticism from industry leaders, who warn that frequent policy reversals could damage the country’s credibility in global sugar markets. Lower-than-expected sugar production prompted the restriction, but exporters say the move creates uncertainty, disrupts trade relationships, and pressures ethanol-linked investments and mill finances.
Mumbai: India’s sudden decision to halt sugar exports has drawn strong criticism from industry leaders, who warn that frequent policy changes could hurt the country’s reputation in the global market.
At the start of the season, sugar production was estimated at 329 lakh tonnes, but actual output stood lower at around 279 lakh tonnes. Based on earlier expectations of higher production, the central government had initially allowed exports of 15 lakh tonnes of sugar and later increased the quota in February, taking the total permitted exports to 15.90 lakh tonnes.
However, as production fell short in key sugar-producing states, concerns over a possible domestic shortage prompted the government to impose an immediate export ban. The move has sparked objections from the sugar industry, which has called for a review of the decision.
Jayprakash Dandegaonkar, former president of the National Federation of Cooperative Sugar Factories, said the government’s approach to the sector has often been inconsistent. He pointed out that earlier policy decisions encouraged investment in ethanol, but those investments are now facing challenges. He added that just as mills were expecting better returns from sugar, the export ban has created uncertainty for the industry.
B. B. Thombre, president of the West Indian Sugar Mills Association, said exports were allowed to stabilise prices, with a total of 20 lakh tonnes initially planned. However, only about 8 lakh tonnes had been exported so far this season, despite favourable international prices.
He said the sudden restriction could damage India’s credibility in the global sugar trade, as frequent policy shifts make it difficult for buyers to rely on consistent supplies.
Industry representatives have urged the government to reconsider the decision, warning that such abrupt changes could affect long-term trade relationships and the stability of the sugar sector.
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Source : ChiniMandi
