After imposed restrictions on sugar exports, maybe it affects our economy but it definitely prevents the price rise in our domestic market. Giving us the surety that there is no shortage of commodities in the domestic market. 

 The Government of India decided to restrict sugar exports so that they can control the domestic prices of sugar. The government imposed these restrictions on sugar exports. With an aim to increase the availability of the commodity in the domestic market and control the price. Basically, they are trying to maintain the equilibrium of supply and demand in the market. 

The restrictions on sugar exports will be executed from 1 June 2022.

From 1 June 2022 onwards all the sugar exports (raw, refined as well as white sugar) no matter what form of sugar will be banned stated the DGFT (Directorate General of Foreign Trades). 

Shipments this season could be capped at 10 million tonnes. The restrictions on sugar exports will not be implemented in all the countries. These restrictions would not apply to sugar exported to the EU as well as the United States under the CXL and TRQ (tariff rate quota) programmes. Also specified amount of sugar is exported to these regions under CXL and TRQ. India is the world’s largest producer and exporter of sugar after Brazil. A smaller cane crop in the world’s top producer Brazil and high global oil prices have increased overseas demand for Indian sugar. 

Amount of sugar to be exported every Year

In the sugar season 2017-18, 2018-19 and 2019-20 only about 6.2 lakh metric tonnes (LMT), 38 LMT and 59.60 LMT of sugar were exported. However, in the sugar season, 2020-21 against a target of 60 MLT, about 70 LMT have been exported. In the current 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 about 78 LMT have been exported. 

Reasons behind restrictions on Sugar Exports

India has restricted sugar exports for the first time in six years amid a global food shortage. Also the Modi government restricted the sugar export to prevent the shortage and surge in domestic prices, and shortage of commodities in our own country. Government asked the traders to secure permission for overseas sales of the sweetener from June 1 to October 31. In a statement, the government said that it has been continuously monitoring the situation in the sugar sector. Including sugar production, consumption, export as well as price trends in wholesale and retail markets.

Written By: Ashi Dubey

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