India started planning to curb sugar exports in March
After higher output f39;cast, India allowed some more exports
Traders say exports of 10 mln T to help industry, government

NEW DELHIMUMBAI, May 24 Reuters India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices, potentially capping this season39;s exports at 10 million tonnes, a government source told Reuters on Tuesday.

India is the world39;s biggest sugar producer and the second biggest exporter behind Brazil.

Reuters in March reported that India was planning to curb sugar exports to keep a lid on local prices and ensure steady supplies in the domestic market. 

Lower sugar output in Brazil and high oil prices which encourage mills there to produce more sugarcanebased ethanol have spurred global price gains. Initially, India planned to cap sugar exports at 8 million tonnes, but the government later decided to allow mills to sell some more sugar on the world market as production estimates were revised upwards. The Indian Sugar Mills Association, a producers39; body, revised its output forecast to 35.5 million tonnes, up from its previous estimate of 31 million tonnes. Indian mills have so far signed contracts to export 8.5 million tonnes of sugar in the current 202122 marketing year without government subsidies. Out of the contracted 8.5 million tonnes, mills have already dispatched around 7.1 million tonnes of the sweetener. L3N2XB1CM Shares in leading sugar…