India Restricts Sugar Exports From June 1st

Story Highlights
  • The restriction was imposed to prevent a surge in domestic prices after mills sold a record volume.
  • India is the world's biggest sugar producer and the second biggest exporter.
  • The government is worried about food inflation.

New Delhi: India imposed restrictions on the export of sugar to 10 million tonnes from June 1st up to October 31st 2022, or until further orders. The government said that the decision was taken to ensure adequate supplies and keep prices stable. Export of sugar is allowed only with specific permission from Directorate of Sugar, Department of Food and Public Distribution and Ministry of Consumer Affairs, Food & Public Distribution,” a notification said.

However, sugar exports to the European Union and the United States under CXL and Tariff Rate Quota will continue. A specified amount of sugar is exported to these regions under the quota.

India is the world’s biggest sugar producer and the second-largest exporter after Brazil. Export restrictions by India would likely increase prices globally. The country had last restricted the export of sugar by imposing an export duty of 20% in 2016. The decision came at a time when India is set to register its highest-ever exports, according to reports.

“The decision will ensure that the closing stock of sugar at the end of sugar season [September 30] remains 60-65 lakh metric tonnes, which is 2-3 months stocks [monthly requirement is around 24 lakh metric tonnes in those months] required for domestic use,” the Department of Commerce said.

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