India Sees No Immediate Need to Restrict Sugar Exports, Government Sources Say

India currently has no plans to restrict sugar exports, despite an anticipated reduction in production, as stable prices indicate that weaker demand has offset some of the production deficit, two government sources said on Wednesday. India, the world's second-largest sugar exporter after Brazil, had previously allowed mills to export 1.59 million tonnes, betting that production would exceed domestic demand. However, sugar output is now expected to fall short of consumption for the second consecutive year, primarily due to weakened sugarcane production in key growing regions. Furthermore, forecasts suggesting that El Niño weather conditions could adversely affect this year's monsoon rains have heightened the risk that next season's output might also fall below initial estimates. These factors had fueled market speculation that India might implement controls on sugar exports. Nevertheless, the government believes that domestic supplies remain comfortable and sees no need to restrict shipments. "We are closely monitoring the situation and have taken into account the latest production estimates, concluding that there is no need to restrict sugar exports at this stage," one of the sources stated. A government spokesperson did not immediately respond to a request for comment. Of the 1.59 million tonnes approved for export, approximately 530,000 to 540,000 tonnes have already been shipped, with over 800,000 tonnes contracted.