Indian government moots sugar export restrictions, extending rice levies

  • The Indian government is considering export curbs on sugar following poor monsoon rains, which have been the lowest since 2018 due to the disturbances from El Nino.
  • The curbs are likely to begin in the upcoming season which began on 1 October, with quotas for overseas sales being issued if domestic supply improves.
  • The monsoon rains are typically responsible for 70% of India’s agricultural and reservoir water demand. The El-Nino induced deficit risks distortions on agricultural supply of staples including sugar, rice, and vegetables.
  • New Delhi is also considering an extension of the 20% export levy on parboiled rice, which was originally due to expire on 15 October.

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