In a first in 6 years, Centre caps sugar exports to shore up domestic stock
India Today
The Centre has ordered regulation of sugar exports from June 1 to ensure adequate sugar stock for domestic demand and price stability.
Alerted by the global supply volatilities due to the Russia-Ukraine conflict, the Centre has ordered regulation of sugar exports from June 1 to ensure adequate sugar stock for domestic demand and price stability.
For the first time in six years, the government has introduced curbs to regulate exports of sugar. Now, only 100 LMT of sugar can be exported out of the country.
The step was taken so that the closing stock of sugar at the end of the sugar season (Sept 30, 2022) remains between 60-65 LMT. This is the stock needed for two to three months, as the domestic monthly requirement is around 24 LMT in those months.
The government has factored in that cane crushing in the new season will begin in three major sugar producing states in the October-November period. Cane crushing starts in Karnataka in the last week of October; in Maharashtra it is the last week of October to November; in Uttar Pradesh it begins in November.
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Annually, till November, the supply of sugar takes place from the previous year’s stock. In sugar seasons 2017-18, 2018-19 and 2019-20, about 6.2 LMT, 38 LMT and 59.60 LMT of sugar was exported respectively. In sugar season 2020-21 about 70 LMT was exported, in excess of the target of 60 LMT.
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 approximately 78 LMT has already been exported.
