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Government extends restriction on sugar exports beyond October 31

18 Oct 2023 Evaluate

The government has extended restriction on sugar exports (Raw sugar, White sugar, Refined sugar and Organic sugar) beyond October 31, 2023 till further orders.  This restriction is not applicable to sugar being exported to European Union and the United States under CXL and Tariff Rate Quota as per prescribed procedure in the respective public notices. Other conditions will remain unchanged. The said move is aimed to increase availability of the commodity in the domestic market.

India was the second largest exporter of sugar in the world in last year. India exporters restricted to export beyond 6.1 million tonnes sugar in the current marketing year ending on September 30, due to a likely drop in production. The country exported a record 11 million tonnes of sugar in the previous 2021-2022 season, but New Delhi allowed exports of only 6.1 million tonnes in the current year due to an expected drop in production. Production is likely to fall to 32.8 million tonnes in the current year, from a record 35.8 million tonnes in the previous season. The season is from October-September. India mainly exports sugar to Indonesia, Bangladesh, Malaysia, Sudan, Somalia and the United Arab Emirates. 

Government of India has always prioritize availability of sugar for domestic consumption, diversion for ethanol production and sufficient closing balance at the end of season. Only surplus sugar, if available, is allowed for exports. This mechanism ensures stability of prices in domestic market. It is the outcome of this policy only that Indian consumers are getting sugar at one of the lowest prices in the world with no government subsidy to the sugar mills. The government has been continuously monitoring the situation in the sugar sector, including production, consumption, export as well as price trends in wholesale and retail markets all over the country.


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