India is considering restrictions on sugar exports for the first time in six years and may cap exports at around 8 million tonnes in an effort to prevent domestic prices surging, government and industry sources told Reuters.
Any curbs on exports by the world's second biggest sugar exporter could lift global sugar prices that have been supported by lower output in top producer Brazil and firm crude oil prices, which encourages mills to produce more sugarcane-based ethanol.
"Sugar output is going to be a record high, but stocks are depleting fast because of exports. Uncontrolled exports could create scarcity and local prices could spike during festive season," said a senior government official with knowledge of the matter who asked not to be identified.
Cashing in on rising global sugar prices, Indian mills have contracted to export around 7 million tonnes of the sweetener so far in 2021/22 marketing year ending on September 30, dealers said.
India's Ministry of Commerce and Industry did not immediately respond to a request for comment.
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