India-the second largest producer and exporter of sugar in the world, on 5th of November 2022, resumed sugar exports. As per the notification issued by the food ministry of India, sugar millers, producers, and exporters of the country, now can export the sweetener to the tune of 6mt till 31st of May,2022.
Explaining the rationale behind the sugar export quota of 6mt till May end, the government said that, this has been done to prevent uncontrolled exports of sugar and ensure adequate stocks for domestic consumption so that the prices of remain stable in the domestic markets.
It also clarified that further allocation of quota for sugar exports will be decided as per the production of sugar on domestic front.
With a view to ensure adequate domestic supplies and prevent a surge in price amid a rise in food and fuel prices, the government of India on the 1st of June,2022 moved sugar from “free” to “restricted” category. With that, the Sugar Exporters now needed to obtain permission for the overseas sale of sugar, and the export quota was set at 100 lakhs metric tonnes for the 2021-22 sugar season.
With October approaching, sugar millers, manufacturers, and exporters were hopeful that the government would again move sugar from “restricted” to “free” category. However, the government decided to continue with the sugar export quota till the end of October 2023 and determine the export quota for the new sugar season in phases after a proper assessment of the domestic situation. This led to disappointment for sugar millers of the country as they expected the unhindered trade of the sweetener to the back.
The food ministry of India’s notification that allowed sugar exports up to 6 mt till May 2023, brought huge relief for the sugar exporters of the country as they were long waiting for the government’s decision in this regard.
As per the notification, the sugar mills of the country can now export the sweetener themselves or with the help of exporters or by swapping with the domestic sale quota of any other mills and this has been welcomed as good news that sugar exporters were waiting for since long.
Although there is some sorrow as the export quota still continues, the sugar millers are hopeful that the government will keep taking steps to boost sugar exports as the domestic supplies are satisfactory.
The Bottom Line
After the government of India moved sugar from free to restricted category and imposed restrictions on the export of sugar for the current sugar season, the sugar millers of the country were waiting for long and were hopeful that the government would bring back sugar in the “free to trade” category in the new sugar season.
While the export quota still remained for the new sugar season which led to disappointment for sugar exporters, the GOI allowed sugar exports to the tune of 6 mt till May next year and this brought cheer on the faces of Sugar Exporters who were long waiting for the government’s nod in this regard.
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