India sugar prices are likely to remain firm despite New Delhi's move to cap exports as stockpiles are set to fall to the lowest level in five years amid record shipments and robust local demand, industry officials told Reuters. Higher local prices will keep margins intact of sugar makers such as Balrampur Chini, Shree Renuka Sugars, Dalmia Bharat Sugar and Dwarikesh Sugar and help them in making cane payments on time to farmers. India on Tuesday imposed restrictions on sugar exports for the first time in six years by capping this season's shipments at a record 10 million tonnes, up from last year's 7.2 million tonnes.
India could start sugar's new marketing year on Oct. 1 with carry forward stocks of 6.2 million tonnes even after exporting a record 10 million tonnes, the top official at the food ministry said on Wednesday. On Tuesday India imposed restrictions on sugar exports for the first time in six years by capping this season's exports at 10 million tonnes. New Delhi had decided to restrict exports as a precautionary measure in an attempt to ensure enough supplies remain in the country to meet demand during festival season, Food Secretary Sudhanshu Pandey told reporters.
MUMBAI (Reuters) -India has imposed restrictions on sugar exports for the first time in six years by capping this season's exports at 10 million tonnes, a government order said, to prevent a surge in domestic prices after mills sold a record volume on the world market. India is the world's biggest sugar producer and the second biggest exporter behind Brazil. Reuters in March reported that India was planning to curb sugar exports to keep a lid on local prices and ensure steady supplies in the domestic market.