Prepare for India’s impending ban on sugar exports. The price is expected to skyrocket.

Director-General of the Department of Foreign Trade. Revealed that the Indian government is preparing to announce a ban on sugar exports next season. To preserve enough for use in the country Currently, the world sugar price is determined by 3 giant exporters: Brazil, Thailand, and India. If India takes the above measures, it will definitely result in an increase in the world sugar price.

Mr. Ronarong Poolpipat, Director-General of the Department of Foreign Trade, revealed that after the Indian government announced a ban on rice exports within the country on July 20, 2023, it has created chaos in the world rice market. And soon The Indian government is preparing to announce a ban on sugar exports next season. India is one of the world's largest sugar producers. And with a population size of approximately 1.4 billion people, it has the highest domestic consumption in the world. But this year faced drought problems due to extremely hot weather in the first half of the year. This was followed by a lack of rain during the monsoon season in the main sugarcane growing regions of Maharashtra in the west and Karnataka in the south, which together account for more than half of India's total sugar production. Rainfall is 50 percent lower than average, resulting in sugar production in the 2023/24 production season decreasing to 31.7 million tons, or a decrease of 3.3%, and may affect planting in the 2024/25 production season.

India primarily produces sugar for domestic consumption. and produce ethanol from excess sugarcane During the production period of 2022/23, the Indian government has allowed the export of 6.1 million tonnes of sugar. However, in July 2023, India experienced a situation where retail inflation rose to the highest level in 15 months at 7.44% and food inflation rose to the highest in 15 months at 7.44%. is 11.5%, the highest in three years, and it is expected that India's sugar supply may not be enough to allocate export quotas for next season (October 2023).

Mr. Ronarong further revealed that in the production year 2022/23, Thailand has approximately 93.88 million tons of sugar cane crushed, an increase of 1.97 percent from 2021/22, and sugar production in 2022/23 of approximately 11.05 million tons, an increase from 2021/2021. 2022, 8.88 percent, with the volume of sugar exports during January - July 2023 approximately 5.5 million tons, an increase of 2.4% from the same period last year, but India has banned sugar exports. This will result in a decrease in the world's sugar supply. and the world sugar price has increased. Including the prices of products that use sugar as an ingredient will increase accordingly.

Source: Thai News Agency