India extends sugar export curbs beyond October
On Tuesday, all-India average retail sugar price was ₹44.03 a kg, up nearly 2% month-on-month, 3.1% on year
The Indian government on Wednesday extended export curbs on sugar beyond 31 October, to ensure adequate domestic supplies amid higher demand and output concerns in major producing states following the weakest monsoon season in five years.
The date of ‘restriction’ on export of raw, white, refined and organic sugar is being extended beyond 31 October 2023 till further orders, the Directorate General of Foreign Trade said in a notification. Other conditions remain unchanged.
The curbs, however, do not apply to sugar exported to the European Union and the US under the CXL and tariff-rate quota systems, the DGFT notification clarified.
On 2 June, Mint had reported that government may not allow mills a free hand in exporting sugar in the 2023-24 (October-September) season.
India, which surpassed Brazil in the 2021-22 season to become the world’s largest sugar producer and second-largest exporter, imposed export controls in October last year, adopting a mill-wise quota system. By the end of the 2022-23 crop year (July-June), local sugar mills had exported 6.2 million tonne of the sweetener.
This year with production numbers under the cloud following erratic monsoon rains, and inflation a major concern, and several states heading for polls in the coming month ahead of the national election in 2024, the government aims to keep prices of the kitchen essential under check.
On Tuesday, all-India average retail sugar price was ₹44.03 a kg, up nearly 2% month-on-month, 3.1% on year, according to data from the consumer affairs ministry.
The government’s priority is to ensure adequate supply for domestic consumption, ethanol production, keep domestic sugar prices in check, and have optimal closing stock at the end of the season.
