Sugar export restriction will ensure 2-3 months’ stock remains at the end of season: Govt

The Ministry of Consumer Affairs, Food & Public Distribution has said that the sugar export restriction will allow two-three months of stock to remain at the end of the sugar season. It has also allowed export of sugar up to 100 LMT in order to maintain the domestic availability and price stability during the season.

The government has imposed restrictions on sugar export from June 1 to October 31 or further orders, whichever is earlier. Exports after that would require special permission from the Directorate General of Foreign Trade (DGFT). Sugar mills and exporters will need to take approvals in the form of Export Release Orders (EROs) from the Directorate of Sugar, Department of Food and Public Distribution. 

“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,” the ministry added. It said that the new season starts in October in Karnataka, November in Uttar Pradesh and October-November in Maharashtra, meaning that till November supply of sugar takes place from the previous year’s stock. 

The government elaborated that the decision came as sugar exports increased substantially. “In sugar seasons 2017-18, 2018-19 & 2019-20, only about 6.2 LMT, 38 LMT & 59.60 LMT of sugar were exported. In the sugar season 2020-21 against a target of 60 LMT, about 70 LMT have been exported,” it said. In the 2021-2022 season, 90 LMT have been signed for exports, out of which 82 LMT have been dispatched from mills for exports, and 78 LMT exported. Current sugar season exports have been the highest historically. 

“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,” it said. 

“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 in different parts of the country,” it said. 

Also read: Govt imposes restrictions on sugar exports from June 1