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Govt allows sugar exports of additional 1.2 million tonnes in current marketing year

08 Aug 2022 Evaluate

The government has relaxed the quantitative restriction of 10 million tonnes on sugar exports and allowed shipments of an additional 1.2 million tonnes in the current marketing year ending September. The government has taken this decision as the stock position of sugar since May 2022 improved due to increase in production and decrease in domestic consumption. The food ministry reviewed the position in the last week of July and decided to increase the export quota for the current marketing year (2021-22). In late May, the government had decided to cap sugar exports at 10 million tonnes in the 2021-22 marketing year (October-September) to maintain domestic availability and price stability.

The food ministry said even after export of sugar of up to 11.2 million tonnes, closing stock of 6 million tonnes would be maintained. Sugar exports stood at 7 million tonnes in the 2020-21 marketing year, up from 5.96 million tonnes in the previous year. Moreover, it said sugarcane crushing operations in Maharashtra, Karnataka and other states would commence from first to third week of October 2022. Therefore, there would be sufficient availability of sugar in the country at reasonable price & retail price would likely to remain stable.

The ministry said sugar exports have already touched about 10 million tonnes this year so far, adding that this has helped in improving liquidity of sugar mills by Rs 33,000 crore. Further, export of additional 1.2 million tonnes would help in improving liquidity of sugar mills by Rs 3,600 crore. This will enable mills to clear cane price dues of farmers which stood at around Rs 9,700 crore as on August 4. It added that export of sugar to this extent would also help in earning foreign exchange and help in reducing trade deficit.

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