India may permit the sale of 20,000 tonnes of refined sugar to Kenya, one of its strategic allies in Africa, according to media reports. The move comes despite an export ban in place since October 2022.
"This will probably be allowed under the advanced authorization scheme," a government official told the local media.
Refineries are allowed to import raw sugar under the scheme and export the refined sugar.
India restricted sugar exports in October last year. The country overtook Brazil in the 2021–2022 season to become the world's largest producer and second-largest exporter of sugar. In light of an anticipated drop in production, the export ban was later extended past October 2023.
“Although India will have sufficient availability for domestic consumption, there may not be any surplus quantity for exports due to anticipated lower production this year than the previous year," the official stated.
As a result, it has been recommended that the refineries that import raw sugar and export refined sugar under the authorization scheme export the required quantity to Kenya, according to the official statement.
Kenya traditionally imports 10,376 tonnes of sugar from India on average every fiscal year. Overriding an earlier ban, the government permitted the export of 100,000 tonnes of non-Basmati white rice to Kenya and 140,000 tonnes to four other African countries earlier this month, according to sources in the commerce ministry.
El Nino weather conditions in August, which severely disrupt monsoon rains in top-producing states Maharashtra and Karnataka, are to blame for this year's lower agricultural output.
In response to a sharp increase in food inflation, the Indian government has tightened export restrictions as the country approaches a pivotal general election in 2024.