Government restricts sugar exports to 10 million tonnes

NEW DELHI: The government on Tuesday announced a curb on export of sugar beyond 100 lakh tonnes (MTs) during this sugar season ending September. The government said this has been done considering the high increase in exports of the sweetener in the past few months.
“Taking into consideration of the 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 from June 1, 2022,” the food ministry said.
Sugar mills and exporters need to take approvals in the form of Export Release Orders (EROs) from the food ministry.
As per the new guideline, which were issued late Tuesday night, sugar exports have been allowed up to May 31 without any ERO or approval. For exports through bulk and break-bulk vessels, if shipping bill is filed and if their rotation number is allocated by May 31, such vessels will be allowed to proceed for load and export without any approval or release order.
For exports between June 1 and October 30, ERO will be required.
Similarly, sugar millers will have to submit the daily dispatch of sugar for export till May 31. They would need to submit consolidated figures on June 1, and are required to apply to the government seeking approval for dispatch of sugar for export from June 1 onwards.
The government has come out with these clear guidelines for sugar export after learning from the mismanagement at ports post the sudden curb put on wheat exports. Thousands of trucks had clogged the Kandla port and the government had to come out with some relaxations to allow the export of wheat consignments which were handed over to customs for clearance.
According to official data, in sugar seasons 2017-18, 2018-19 and 2019-20, about 6.2 lakh, 38 lakh and 60 lah tonnes of sugar was exported.
In the sugar season 2020-21, against a target of 60 lakh tonnes about 70 lakh tonnes have been exported.
Contracts for export of about 90 lakh tonnes have been signed in the current sugar season 2021-22 and about 82 lakh tonnes sugar has been dispatched from sugar mills for export.
Export of sugar in the current sugar season 2021-22 is historically the highest, the ministry said.
While announcing this fresh regulation on sugar export, the ministry said the government will allow export up to 100 lakh tonnes so that closing stock of sugar at the end of sugar season (September 2022) remains 60-65 lakh tonnes which is 2-3 months’ stocks. India consumes around 24 lakh tonnes of sugar every month.
The government said crushing in the new season starts in October and November. So generally, up to November, supply of sugar takes place from previous year stock.