Regulation of Sugar Exports

May 27, 2022

The central government has imposed restrictions on sugar exports from June 1^st, 2022 to increase the availability of sugar in the country during sugar season 2021-22 (October-September) and also curb price rise. Usually, during the festival season of October – November, the demand for sugar increases, and therefore, the government is committed to ensuring its adequate availability.

Who issued the notification and what are the exceptions?

According to the notification issued by the Directorate General of Foreign Trade (DGFT), the export of sugar (raw, refined, and white sugar) is placed under the restricted category from June 1^st, 2022. However, these restrictions do not apply to sugar exported to the European Union (EU) and the USA under CXL and Tariff Rate Quota (TRQ).

What is the priority of the government and what are the concerns?

The priority of the government is to ensure sufficient availability of sugar for consumption at a reasonable rate in the domestic market, and divert more sugar into ethanol production.

However, farmers are concerned with the export controls, as they will get less payment from traders, citing export control as an excuse. Some farmer groups say that sugar production is a surplus in the country and monsoon reports were also normal. So they believe government should have considered these factors before imposing restrictions.

Wholesale prices of sugar in India are in the range of ₹3,150-₹3,500 per quintal. Globally there is a shortage of sugar mainly due to lower production in Brazil, which is one of the top producers of sugar.

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