Indian Government's move is an effort to increase the amount of sugar available on the domestic market
The central government has extended restrictions on exports of sugar past October 31 of this year, until further instructions. The order that came out on 18 October, was put out in an effort to increase the amount of sugar available on the domestic market over the holiday season.
The earlier deadline for the restrictions was 31 October 31 2023. However, it stated that sugar exported to the European Union and US in accordance with CXL and TRQ duty concession limits will not be subject to these restrictions. Under CXL and TRQ (tariff rate quotas), sugar exports to these areas are limited in quantity.
India is the world's second-largest exporter of sugar and its highest producer. To export sugar, which falls within the restricted category, an exporter would need a license or authorization from the government.
The government has been continuously monitoring the situation in the sugar sector, including production, price trends, consumption, and exports, in wholesale and retail markets all over the country.
In the current marketing year between the months of October-September from 2023 to 2024, Indian Sugar Mills Association (ISMA) has projected sugar production at 317 lakh tonnes after the diversion of 45 lakh tonnes for ethanol. The domestic demand is seen at 280 lakh tonnes. The opening stock will be around 55 lakh tonnes.
India's sugar production stood at 328 lakh tonnes after the diversion of 42 lakh tonnes for ethanol, in the 2022-23 marketing year.
The sugar industry exported 61 lakh tonnes of sugar in 2022-23 with the entire quantity being permitted by the food ministry. India had exported a record 112 lakh tonnes of sugar in the 2021-22 marketing year.
With inputs from PTI