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Govt imposes restrictions on sugar exports from June 1

The sugar export limitations were implemented by the government on Tuesday, with the goal of improving the supply of the commodity in the domestic market and lowering prices.

"From June 1, 2022, onwards, sugar exports (raw, refined, and white sugar) will be banned," the Directorate General of Foreign Trade (DGFT) announced in a statement.

However, it stated that these limits would not apply to sugar exported to the EU and the United States via the CXL and TRQ programs. Under the CLX and TRQ programs, a certain amount of sugar is exported to these areas.

The government announced in a statement that it has taken steps to ensure domestic supply and price stability of sugar throughout the sugar season 2021-22 (October-September).

With effect from June 1, it has been agreed to control sugar exports.

"In order to ensure domestic availability, the government has agreed to allow sugar export data up to 100 LMT (lakh metric tonnes)."

"As well as price stability for the sugar season of 2021-22 (October-September)," it added. "Export of sugar will be authorized with the express approval of the Directorate of Sugar, Department of Food and Public Distribution, with effect from 1st June 2022, until 31st October 2022, or until further instruction, whichever is sooner," it added.

The new decision was made against a backdrop of record sugar export data. 

According to the statement, only roughly 6.2 LMT, 38 LMT, and 59.60 LMT of sugar were exported in the sugar seasons of 2017-18, 2018-19, and 2019-20, respectively.

However, in the sugar season 2020-21, 70 LMT were exported against a target of 60 LMT.

Approximately 90 contracts for export have been signed for the current sugar season (2021–22). Contracts for the export of around 90 LMT were signed. Approximately 82 LMT of sugar was dispatched for export from sugar mills, and approximately 78 LMT of sugar was shipped.

According to the statement, sugar exports in the current sugar season (2021-22) are at an all-time high.

"The decision will ensure that the closing stock of sugar at the end of the sugar season (30th September 2022) remains 60-65 LMT, which is 2-3 months' stock (monthly requirement is required for domestic use," "it said, adding that crushing in the new season will begin in the last week of October in Karnataka, the last week of October to November in Maharashtra, and November in Uttar Pradesh.

"In general, up to November, sugar is supplied from last year's stock," the ministry stated.

"The Government of India has decided to regulate sugar exports, taking into account unprecedented growth in sugar exports and the need to maintain a sufficient stock of sugar in the country, as well as to safeguard the interests of the country's common citizens by keeping sugar prices under control," it said.

"It serves the sugar mills and exporters must get authorization from the Directorate of Sugar, Department of Food and Public Distribution, in the form of Export Release Orders (EROs).

The government has been closely monitoring the sugar sector's situation, including production, consumption, export, and price trends in wholesale and retail markets across the country.

In the current year, India was the world's highest producer and second-largest exporter of sugar.

Because of the government's consistent efforts, 99.5 percent of cane dues for the previous sugar season (2020–21) were paid, and roughly 85 percent of cane dues for the current sugar season (2021–22) were also released to farmers.

According to the statement, sugar wholesale prices in India are controlled in the range of Rs 3,150-3,500 per quintal, while retail prices are controlled in the range of Rs 36-44 per kilogram in various areas of the nation.

  • Seair Exim
  • 03-Jun-2022

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