India's Sugar Export Ban Set to Extend Amidst Lower Cane Output

India plans to extend its ban on sugar exports for the second consecutive year due to expected lower cane output. The government also aims to increase ethanol procurement prices to boost biofuel supplies. These measures are likely to impact global sugar prices and production dynamics.

India is planning to extend its ban on sugar exports for a second straight year as it faces anticipated lower cane output, according to sources within the government. The decision could impact global supplies and benchmark prices in key markets like New York and London.

Efforts are also underway to raise the price at which state oil companies purchase ethanol from sugar mills, boosting domestic biofuel supplies. The move coincides with a government initiative to increase ethanol blending in gasoline to 20% by 2025-26.

Government insiders have said that due to a challenging crop scenario, there is insufficient supply to allow for exports. The export ban and ethanol pricing changes are expected to be formally announced later this month.

(With inputs from agencies.)