Since early May, registration certificate (RC) for export of about 3.30 lakh tonnes of sugar has been issued by the Commerce Ministry. The ministry has taken this step as on May 02 the government decided to allow unrestricted sugar exports by bringing it under the open general licence (OGL).
However, the Commerce Ministry issued the guidelines for exporters allowing to ship the sugar only after taking RC from the Directorate General of Foreign Trade (DGFT) under the ministry.
As per Indian Sugar Mills Association (ISMA), till June 03, the DGFT had issued RC for 3.32 lakh tonnes of sugar of which 1.77 lakh tonnes has already been exported. Besides, the mills have also shipped the entire 20 lakh tonnes of sugar that were allowed before May.
India’s sugar output is expected to touch 26 million tonnes in 2011-12, higher than the annual demand of 21.5-22 million tonnes, due to which the government has permitted for exports.