Government imposes restrictions on sugar exports from June 1 to control prices and increase commodity's availability

With an aim to increase the availability of the commodity in the domestic market and to control the price rise, the government on Tuesday imposed restrictions on sugar exports from June 1, 2022.

"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.

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.

However, it said that these restrictions would not be applicable to 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.

"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.

Reported by Mrityunjya Jha

With PTI Inputs