Government resumes sugar export, licenses 6 million tons on quota basis until May 31

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New Delhi: A statement from the Food Ministry said the government on Saturday allowed 6 million tons of sugar to be shipped until May 31.

According to the notification, the ministry has set aside a record export limit of 18.23% of the three-year average production of sweeteners during active sugar seasons.

She said that the sugar factories may deal with the share of the local sale of any other mills or export themselves through the exporters or directly. September through October is sugar season.

“In order to prevent the uncontrolled export of sugar or with a view to ensuring that sufficient quantity of sugar is available for domestic consumption at a reasonable price, the government has decided to allow the export of sugar up to a reasonable extent from November 1 to May 31, 2023,” he said.

Reportedly, the first batch of the quota was only allowed until the end of May. The continued increase in the export share will be determined based on domestic sugar production.

In Maharashtra and Karnataka, sugar production for the new season 2022-23 started in October. However, within a week it will start in Uttar Pradesh and other states for sugarcane cultivation.

According to the cooperative body, National Union of Cooperative Sugar Mills Co., Ltd., the mills produced 4.05 thousand tons of sugar in October alone, 14.73% less than the same month last year.

For the final months of the 2021-22 season (October-September), the government imposed restrictions on sugar exports to ensure there was enough for domestic consumption and to avoid any retail price increases during the holiday season.

Despite the restrictions, about 11 million tons of sugar were exported during the 2021-2022 season.

In the 2021-22 season, 35.92 million tons of sugar were produced. The three largest sugar producing states in the country are Maharashtra, Uttar Pradesh and Karnataka.



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