The government has decided to allow the export of sugar up to 100 LMT with a view to maintaining the domestic availability and price stability during the sugar season 2021-22(October-September).
As per an order issued by the Directorate General of Foreign Trade (DGFT), with effect from 1 June 2022 till 31 October 2022, or till further order, the export of sugar will be allowed with specific permission of the Directorate of Sugar, Department of Food & Public Distribution.
The decision came in the light of record exports of the sugar. In sugar seasons 2017-18, 2018-19 & 2019-20, only about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported. In sugar season 2020-21 against a target of 60 LMT about 70 LMT have been exported.
In the current sugar season 2021-22, contracts for export of about 90 LMT have been signed, about 82 LMT sugar has been dispatched from sugar mills for export and approx. 78 LMT have been exported. Export of sugar in the current sugar season 2021-22 is historically the highest.
An official release today said the decision will ensure that the closing stock of sugar at the end of sugar season (30 September 2022) remains 60-65 LMT which is 2-3 months of stocks (monthly requirement is around 24 LMT in those months) required for domestic use.
Crushing in the new season starts in the last week of October in Karnataka and in the last week of October to November in Maharashtra and in November in Uttar Pradesh. So generally up to November, the supply of sugar takes place from the previous year’s stock.
The release said sugar mills and exporters need to take approvals in the form of Export Release Orders (EROs) from the Directorate of Sugar, Department of Food and Public Distribution.