However, it is set to ban exports in the crop year that started in October and may even be forced to import in the following year as farmers turn to other crops, according to traders, industry officials, and farmer interviews.

 

The production decline is driven by unusually dry conditions, fuelled by El Nino, in the western state of Maharashtra and its neighbour to the south, Karnataka, which along with Uttar Pradesh in the north account for over 80% of Indian sugar output.

 

Reuters spoke with more than 200 farmers during a recent visit to Maharashtra and Karnataka.