The government has decided to allow sugar exports up to 100 lakh metric tonnes with a view to maintaining domestic availability.
The government has decided to regulate sugar exports from 1st June taking into consideration the phenomenal growth in exports of sugar and the need to maintain sufficient stock of sugar in the country as well as to safeguard the interests of the common citizens by keeping the prices of sugar under check.
Along with maintaining domestic availability, the government also wants to maintain the price stability of sugar during the sugar season 2021-22. Export of sugar in current sugar season 2021-22 is historically highest.
The decision will guarantee that the closing stock of sugar at the end of the sugar season remains 60 to 65 LMT which is 2 to 3 months of stocks required for domestic use. Crushing in the new season starts during the last week of October in Karnataka and in the last week of October to November in Maharashtra and in November in Uttar Pradesh.
As per the order issued by the Directorate General of Foreign Trade, with effect from 1st June till 31st October this year 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 decision came in the light of record exports of the sugar. In sugar season 2020-21 against a target of 60 LMT, about 70 LMT have been exported. In the present sugar season 2021-22, contracts for export of about 90 LMT have been signed, about 82 LMT of sugar has been dispatched from sugar mills for export and around 78 LMT have been exported.
Earlier, after promising to “feed the world”, India banned wheat exports.