A video explainer on the restrictions placed by the Indian government on the export of sugar.
A video explainer on the restrictions placed by the Indian government on the export of sugar.
India is the largest producer and second-largest exporter of sugar after Brazil. Till April this year, India produced 340 lakh tonnes of sugar, a 14% increase from the previous year.
In the last five years, India’s sugar exports have seen a 200 times increase. Yet, for the first time in six years, India has announced restrictions on the export of sugar.
Sugar has been freely exportable in India. But now the export of sugar — raw, refined and white — will be placed under the restricted category from June 1 till October 31.
Exports will be allowed with the specific permission of the Directorate of Sugar and the Department of Food and Public Distribution. These restrictions will not apply to the E.U. and the U.S. as India has a quota arrangement for sugar export with these regions.
As per the Indian Sugar Mills Association, India had an opening stock of 82 lakh tonnes in October last year. Domestic consumption is estimated to be around 278 lakh tonnes in the current season.
The Centre has decided that this season’s sugar exports will be capped at 100 lakh tonnes. India is likely to remain with a closing stock of 60-65 lakh tonnes.
The wholesale price-based inflation reached a record high of 15.08 per cent in April. While the retail prices of sugar have not changed, there is a fear that it might.
Brazil has had low production of sugar this year, which can lead to a possible shortage in the coming days. During the festival period of October and November, the demand for sugar increases.
The government says the decision was taken to maintain domestic availability, especially ahead of the festival season, and to prevent a surge in prices due to lack of supply.
