After wheat, India to curb sugar exports from next month
Days after imposing restrictions on exports of wheat, a move that created stirred in global market, India has now curbed exporting of sugar. The new restrictions will be applicable from June 1, as directed by the government.
Why the curb on sugar exports?
The Centre has decided to restrict sugar exports with aim to curb the rising prices of the essential commodity and also increase its availability in the domestic market. This is second such decision after wheat exports were restricted few days back by the government. These decisions are being taken amid unprecedented inflation in the country led by global tensions along with many other reasons.
“Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards,” the Directorate General of Foreign Trade (DGFT) said in a notification on Tuesday, May 24. “The government has decided to allow export of sugar up to 100 LMT (lakh metric tonnes) with a view to maintain the domestic availability and price stability during the sugar season 2021-22 (October-September),” it said.
“As per the order issued by DGFT, with effect from 1st June, 2022 till 31st October, 2022, or till further order, whichever is earlier, the export of the sugar will be allowed with specific permission of the Directorate of Sugar, Department of Food and Public Distribution,” the notification further added.
What impact does this have in domestic market?
The decision to curb sugar exports comes at a point when domestic market is experiencing record surge in sugar prices at the backdrop of increased sugar exports. “In sugar seasons 2017-18, 2018-19 and 2019-20, only about 6.2 LMT, 38 LMT and 59.60 LMT of sugar was exported,” the statement said. But during the sugar season 2020-21 about 70 LMT have been exported against a target of 60 LMT.
Also Read: Why Has India Suddenly Banned Wheat Exports?
Raising concerns over this, government has taken this action that will help control the price check in market. “Taking into consideration unprecedented growth in exports of sugar and the need to maintain sufficient stock of sugar in the country as well as to safeguard interests of the common citizens of the country by keeping prices of sugar under check, Government of India has decided to regulate sugar exports,” it said.