India, the largest producer of sugar in the world, has restricted exports till October 2023 to prevent a spike in domestic prices brought on by record exports.
According to government and industry officials, India is expected to produce a record sugar crop this year, allowing New Delhi to permit exports of up to 8 million tonnes.
India's sugar exports increased by 57% to 109.8 lakh tonnes in the 2021–22 marketing year, which ended in September, bringing in foreign currency of nearly Rs 40,000 crore.
At the end of the 2021–22 marketing year (October–September), there were only Rs 6,000 crore in sugarcane arrears outstanding to farmers, as mills had already paid them Rs 1.12 lakh crore of the total payable sum of Rs 1.18 lakh crore.
The food ministry reported that "India has emerged as the world's largest producer and consumer of sugar as well as the world's second-largest exporter of sugar" for the 2021–22 marketing year.
A record amount of sugarcane—more than 5,000 lakh tonnes—was produced in the nation between 2021 and 2022, out of which sugar mills crushed about 3,574 lakh tonnes to generate roughly 394 lakh tons of sugar (sucrose).
Out of this, 359 lakh tonnes of sugar were produced by sugar mills, while 35 lakh tonnes of sugar were diverted to ethanol manufacturing.
The cane-crushing season often begins in October or November and lasts until mid-April, whereas the sugar season generally runs from October to September.
