How Arab Countries will be Affected by India’s Suspension of Sugar Exports?
Arab nations are preparing for further food inflation as India bans sugar imports with domestic interests in mind.
India has banned sugar imports because of domestic interests. The import-reliant Arab nations depend heavily on India for agricultural products. The sugar ban will be in place from October to September next year.
According to reliable sources, the 11-month ban on sugar imports was due to a lack of summer monsoon rain this year. The Arab nations are already facing a shortage of rice and onion, and the ban on sugar will add additional woe.
Pushan Sharma, director of research at CRISIL Market Intelligence and Analytics, told Arab News, “This potential ban stems from inadequate rainfall in critical sugarcane cultivating districts.”
While sugarcane-producing states like Uttar Pradesh, Karnataka, and Maharashtra have received sufficient rainfall, a few important districts have received less rainfall, which will directly affect the yield of the sugar-producing crop.
The sharp fall in production is a point of concern for the sugar industry because these states alone are responsible for more than half of the nation’s sugar output.
Fadel El-Zubi, a lead consultant for the UN Food and Agriculture Organization in Jordan, told the following to Arab News:
“There are some Arab countries that will not be able to absorb the price increase shock, and this will affect its imports, its stock, and the distribution process.”
“These Arab countries will witness further inflation, at a time when their local currencies are already weak. Therefore, these countries need to take proactive measures ahead of anticipated disruptions in the food market.” he further stated.
Arab nations such as UAE and Saudi Arabia can face food inflations head-on because of their booming economy, things for other Arab nations look gloomy because they are not cushioned by financial or food backup. The way forward for poorer Arab nations is to become self-reliant and create substitutes for various food items.
An article published on Arab News mentions the following:
“The rise in crude oil prices in recent years, which invariably impacted the cost of freight, had made India a popular choice for Middle Eastern sugar importers, given its relative proximity compared to other major sugar producers like far-flung Brazil.
Nevertheless, Arab countries, mainly in North Africa, imported approximately 10 percent of Brazil’s sugar exports in the first quarter of 2023.”
An article published on Arab News mentions the following:
While the world is quickly adapting to new technology, it also needs to find solutions to food security.
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