Govt allows export of sugar upto 60 Lakh Metric Tonnes in sugar season

The government has allowed the export of sugar upto 60 Lakh Metric Tonnes during the sugar season 2022-23. The measure is aimed at balancing the price stability of sugar in the country and the financial positions of sugar mills.

The Centre has prioritized the availability of about 275 LMT of sugar for domestic consumption, about 50 LMT of sugar for diversion to ethanol production, and to have a closing balance of about 60 LMT of sugar as on September this year. In a statement, the Commerce and Industry Ministry said the balance quantity of sugar will be allowed for exports.

The government has also asked sugar mills to export speedily to make early payments to farmers. In the sugar export policy for sugar season 2022-23, it has announced sugar mill wise export quota for all sugar mills in the country.

Further, to expedite the sugar exports and to ensure flexibility to sugar mills in the execution of the export quota, mills may decide to surrender the quota partially or fully within 60 days of the date of issue of the order or they can swap the export quota with the domestic quota within 60 days.

This system will ensure a lesser burden on the logistics system of the country as the swapping system will reduce the need to transport the sugar from distant locations to the ports for exports. During the sugar season 2021-22, India exported 110 LMT sugar and became the second largest exporter of sugar in the world and earned about 40 thousand crore rupees worth of foreign exchange.

Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers. The Ministry informed that as of the 31st of last month, more than 96 per cent of cane dues of farmers for sugar season 2021-22 were already cleared.

The sugar export policy is an indication of the focus of the government on ensuring price stability in the sugar sector in the interest of domestic consumers. By restricting sugar exports, domestic prices will remain under control and no major inflationary trends will arise in the domestic market.

Comments are closed.