Govt notifies decision to remove the limit on sugar exports

The government has notified the decision to remove the limit on sugar exports, issuing the notification more than a week after an inter-ministerial meeting, Chaired by Prime Minister Manmohan Singh, it was decided to eliminate ceiling on sugar exports by putting it under the Open General Licence (OGL). The move is likely to help industry export its surplus sugar and clear cane payment arrears to farmers that have mounted to over Rs 10,000 crore.

According to the notification, effective from 11th May, there would be no quantitative restrictions on sugar exports and producers are not required to obtain export release order from the Food Ministry under OGL in the 2011-12 marketing year (October-September) till further orders.

The notification further stated that a trader who has imported raw sugar under the Advance Authorisation Scheme (AAS), under which mills are obligated to export the sweetener after processing, on 'grain-to-grain' basis are also not required to obtain export release order. However, export release order is required for mills exporting sugar under AAS on tonne-to-tonne basis.

As per the notification, exporters are asked to upload details about quantity of sugar shipments through online facility to the Food Ministry within three working days. They are also asked to give details of physical exports. Till April, physical shipments of 1.6 million tonnes of sugar were undertaken. During the 2010-11 marketing year, physical exports had stood at 3.1 million tonnes.