Government imposes restrictions on sugar exports from June 1
New Delhi, May 24: The government on Tuesday imposed restrictions on sugar exports from June 1, a move aimed at increasing availability of the commodity in the domestic market and curbing price rise.
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"Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards," the Directorate General of Foreign Trade (DGFT) said in a notification.
However, it said that these restrictions would not be applicable on sugar being exported to the EU and the US under CXL and TRQ. A specified amount of sugar is exported to these regions under CLX and TRQ.
In a statement, the government said that with a view to maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), it has been decided to regulate the sugar exports with effect from June 1.
"The government has decided to allow export of sugar up to 100 LMT (lakh metric tonnes) with a view to maintain the domestic availability and price stability during the sugar season 2021-22 (October-September)," it said.
"As per the order issued by DGFT, with effect from 1st June, 2022 till 31st October, 2022, or till further order, whichever is earlier, the export of the sugar will be allowed with specific permission of the Directorate of Sugar, Department of Food and Public Distribution," it said.
The
latest
decision
also
comes
against
the
backdrop
of
record
exports
of
sugar.
In
sugar
seasons
2017-18,
2018-19
and
2019-20,
only
about
6.2
LMT,
38
LMT
and
59.60
LMT
of
sugar
was
exported,
the
statement
said.
However,
in
the
sugar
season
2020-21
against
a
target
of
60
LMT
about
70
LMT
have
been
exported.
In the current sugar season 2021-22, contracts for export of about 90 LMT have been signed, about 82 LMT sugar has been dispatched from sugar mills for export and about 78 LMT have been exported.
Export of sugar in the current sugar season 2021-22 is the historically highest, the statement said. "The decision will ensure that the closing stock of sugar at the end of sugar season (30th Sept 2022) remains 60-65 LMT which is 2-3 months stocks (monthly requirement is around 24 LMT in those months) required for domestic use," it said, adding that crushing in new season starts in last week of October in Karnataka, in the last week of October to November in Maharashtra and in November in Uttar Pradesh.
"So
generally,
up
to
November,
supply
of
sugar
takes
place
from
previous
year
stock,"
the
government
said.
"Taking
into
consideration
unprecedented
growth
in
exports
of
sugar
and
the
need
to
maintain
sufficient
stock
of
sugar
in
the
country
as
well
as
to
safeguard
interests
of
the
common
citizens
of
the
country
by
keeping
prices
of
sugar
under
check,
Government
of
India
has
decided
to
regulate
sugar
exports,"
it
said.
Sugar mills and exporters need to take approvals in the form of Export Release Orders (EROs) from the Directorate of Sugar, Department of Food and Public Distribution.
The
government
has
been
continuously
monitoring
the
situation
in
the
sugar
sector,
including
sugar
production,
consumption,
export
as
well
as
price
trends
in
wholesale
and
retail
markets
all
over
the
country.
India
has
been
the
highest
producer
and
the
second
largest
exporter
of
sugar
in
the
world
in
the
current
year.
As a result of regular efforts of the government, 99.5 per cent of cane dues for last sugar season 2020-21 have been paid and about 85 per cent of cane dues of current sugar season 2021-22 have also been released to farmers.
Wholesale prices of sugar in India are range bound between Rs 3,150-3,500 per quintal while retail prices are also within control in the range of Rs 36-44 per kilogram in different parts of the country, the statement said.