To check surge in prices, Centre caps sugar exports
Vibha Sharma
New Delhi, May 24
To maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), the Centre has decided to regulate the sugar exports with effect from June 1 till further orders.
India world’s biggest producer
- India is the world’s biggest sugar producer and the second biggest exporter after Brazil
- The government will allow export up to 100 LMT
- Sugar mills and exporters need to take approvals in the form of Export Release Orders from the food ministry.
Taking into consideration unprecedented growth in exports of sugar and the need to maintain its sufficient stock in the country as well as to safeguard interests of the common citizens by keeping the prices of sugar under check, the government has decided to regulate sugar exports with effect from June 1, officials said.
Sugar mills and exporters need to take approvals in form of Export Release Orders (EROs) from the Directorate of Sugar, Department of Food and Public Distribution, they said.
The government will allow exports up to 100 LMT so that the closing stock of sugar at the end of sugar season (September 30, 2022) remains 60-65 LMT, which is two-three month stocks (monthly requirement is around 24 LMT in those months) required for domestic use.
The new crushing season starts in October-November. India is the world’s biggest sugar producer and the second biggest exporter behind Brazil.
Meanwhile, the government also exempted customs duty and agriculture infrastructure development cess on 20 lakh metric tonnes yearly import of crude soyabean and sunflower oil, to ease domestic prices.
The duty-free import of 20 lakh MT per year will be applicable for two FYs (2022-23, 2023-24) for crude soyabean oil and crude sunflower oil, the Finance Ministry said in a notification. The exemption will help cool domestic prices and control inflation.
