India plans cap on sugar export

After wheat, India now contemplates restricting its sugar export, a move that can raise global prices further.
Market experts in Bangladesh suggest that government agencies remain alert so that traders cannot cash in on the Indian curbs.
Reducing the existing high import duties can also ensure smooth supply of the item even after the Indian export cap, they say.
Although official statement is yet to come, news agency Reuters, quoting an Indian government source, says the country may impose a cap on export to hold it within 10-million tonnes. New Delhi wants to ensure smooth local supply of sugar.
An official of a major refining company tells the FE that if India really squeezes export, it will definitely raise global prices.
Sugar now retails at Tk 85-110, which is 20 per cent higher than last year's.
Sugar prices have increased by 20-25 per cent in the last one year to 430-440 per tonne.
Added to this, Bangladesh taka has witnessed a notable devaluation against US dollar, pushing up import costs further in last three months, he observes.
The official suggests that Dhaka seek clearance from New Delhi over the issue immediately.
Import duty should also be rational to encourage importers, he says.
An importer has to pay Tk 3,000 as fixed tariff to import per-tonne raw sugar in addition to value-added tax and 20-per cent regulatory duty, according to importers.
Additional commerce secretary (import and internal trade) AKM Ali Ahad Khan says although import from India has increased since Covid-19, Bangladesh is not dependent largely on the country.
Bangladesh imports maximum sugar from Brazil and China and then from India, he says, adding that Great Britain and Malaysia also export a good quantity to Bangladesh.
So, not to worry about sugar supply, he said. "But we will talk to Indian authority in this regard soon."
Consumers Association of Bangladesh vice-president SM Nazer Hossain says government agencies should be alert so that refiners and traders cannot bank on sugar issue like wheat and edible oils.
Import duty should also be rational for the import-dependent item, he adds.
In recent years, Bangladesh has almost become import-dependent for sugar as its local output declined below 50,000 tonnes in fiscal year 2020-21 against 2.1-22-million tonnes of demand.
Major domestic refiners brought nearly 2.3-million tonnes of sugar during the period.

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