Government extends sugar export restrictions to secure festive season supplies

The government has once again decided to prolong the restrictions on sugar exports, extending them beyond the initial deadline of October 31. The extension will remain in effect until further notice, with the objective of ensuring an adequate supply of sugar in the domestic market during the festive season.

Previously, these export limitations were set to expire on October 31, 2023. In a notification, the Directorate General of Foreign Trade (DGFT) announced, "Restrictions on the export of various sugar types, including Raw Sugar, White Sugar, Refined Sugar, and Organic Sugar, will continue beyond October 31, 2023, until further directives. Other conditions will remain unchanged."

Exemptions for exports

Notably, these restrictions will not apply to sugar exports destined for the European Union (EU) and the United States under CXL and TRQ duty concession quotas. A certain quantity of sugar is allowed for export to these regions under these specific quotas.

The country holds the position of the world's largest sugar producer and the second-largest sugar exporter. To export sugar, individuals or entities will need a licence or permission from the government due to its restricted category.

The government has been actively monitoring various aspects of the sugar sector, including production, consumption, exports, and price trends in both wholesale and retail markets across the country.

Sugar production projections

For the current marketing year of 2023-24 (October to September), the Indian Sugar Mills Association (ISMA) has estimated sugar production to be around 317 lakh tonnes after allocating 45 lakh tonnes for ethanol production. Domestic demand is expected to reach 280 lakh tonnes, with an opening stock of approximately 55 lakh tonnes.

In the preceding marketing year, 2022-23, sugar production amounted to 328 lakh tonnes, with 42 lakh tonnes diverted for ethanol production. In that year, the industry exported 61 lakh tonnes of sugar, fully utilising the quantity authorised by the food ministry. Notably, in the 2021-22 marketing year, India achieved a record-breaking export of 112 lakh tonnes of sugar.

(With PTI Inputs)