India’s Food Minister, Piyush Goyal, is supposedly putting together a new proposal for the Cabinet to extend its 6m tonne export program.
- This comes as the Indian sugar industry made an outcry when Goyal recently announced that the Government is not yet considering subsiding sugar exports.
- World sugar prices remain on an uptrend whilst we wait for a subsidy.
- India’s sugar stocks are also climbing which, in time, will pressure its domestic prices.
- This plays into the hands of the Government, as it also means a smaller subsidy will be required to reach export parity.
- However, with India set to produce 32.5m tonnes of sugar this season, up 6.5m tonnes from consumption, we still think 6m tonnes of exports are required in 2020/21.
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