Govt imposes restrictions on sugar exports from June 1

Tags: Economy/Finance

The government on May 24 restricted the export of sugar with effect from June 1, aimed at increasing the availability of sugar in the domestic market and curbing price rise.

• As per notification of the Directorate General of Foreign Trade (DGFT) Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards. 

• These restrictions will not apply to sugar being exported to the EU and US under CXL and TRQ.

• A certain amount of sugar is exported to these regions under TRQ and CLX.

• The government has also decided to allow export of sugar up to 100 LMT (Lakh Metric Tonnes) during the sugar season 2021-22 (October-September) for maintaining domestic availability and price stability.

• With the specific permission of the Directorate of Sugar, Food and Public Distribution Department, export of sugar will be allowed.

• Exports of the sugar

• About 70 lakh metric tonnes have been exported against the target of 60 lakh metric tonnes in the sugar season 2020-21.

• In the current sugar season 2021-22, contracts for export of about 90 LMT have been signed, about 82 LMT sugar has been dispatched from sugar mills for export and about 78 LMT have been exported.

• Sugar exports are historically highest in the current sugar season 2021-22.

• This decision will ensure that the closing stock of sugar at the end of the sugar season is 60 to 65 LMT, which is the required 2 to 3 months stock for domestic use.

• Important facts

• Uttar Pradesh is the largest sugar producing state in India, followed by Maharashtra.

• Sugarcane is grown during Kharif season.

• Brazil is the world's largest sugar producer.

• India has second place in sugar production in the world.

• The first cooperative sugar factory was established in the year 1957 in district Nainital (presently in district Udham Singh Nagar).