New Delhi, 25/3:India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices and could cap this season’s exports at 80 lakh tonnes, government and industry sources told Reuters.
An announcement could come early next month, they said.
Shares in sugar manufacturers slid on the news, with Dhampur Sugar Mills and Balrampur Chini each tumbling 5% and Dwarikesh Sugar losing 6%.
“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.