Jun 08: The Government of India gave ample time to sugar exporters and millers to submit their applications on National Single Window System (NSWS) with regard to restrictions on the export of sugar beyond 100 LMT.
Taking into consideration unprecedented growth in exports of sugar and the need to maintain sufficient stock of sugar in the country as well as to safeguard the interests of the common citizens of the country by keeping prices of sugar under check, the Government of India decided to regulate sugar exports w.e.f. 01 June 2022 and imposed restrictions on the export of sugar beyond 100 LMT.
Applications were invited from sugar mills and exporters online on the NSWS portal for obtaining approvals in the form of Export Release Orders (EROs) from the Directorate of Sugar & Vegetable Oils, Department of Food and Public Distribution (DFPD) vide letter dated 24.05.2022.
All sugar exporters and millers were communicated to file the online application in the NSWS portal and were informed that the portal will be opened on June 1. Significantly, there was enough time for preparing the application and thereafter, filing it.
Instructions for sugar mills and exporters were issued and posted on the website of DFPD. The applications were processed on a first come first serve basis in a timely manner. Since a large number of applications were received from sugar mills/exporters for the quantity of more than 23 LMT till 3rd June’2022, & as the quantity of only 10 LMT was to be distributed among sugar mills/exporters, it was decided to distribute the quantity of only 10 LMT on pro-rata basis among sugar mills/exporters whose applications were received till 3rd June’ 2022.
In the past few years also, whenever export quota was allocated among sugar mills it was allocated to sugar mills on a pro-rata basis; therefore, this time also in order to maintain transparency & to give the opportunity to all exporters/ sugar mills who have applied till 3rd June’ 2022, Export Release Orders were issued on pro-rata basis.
During the past few years, sugar production in the country has been consistently more than domestic consumption thereby creating a surplus situation. In a view to addressing the problem of surplus sugar in the country, the Central Government has been encouraging sugar mills during the past few sugar seasons to divert surplus sugar to ethanol and is also facilitating sugar mills to export surplus sugar thereby improving the liquidity of sugar mills enabling them to clear cane price dues of farmers. Export of sugar and diversion of sugar to ethanol during the recent times has also helped in maintaining demand-supply balance and stabilizing domestic sugar prices. Details of sugar export and diversion of sugar to ethanol since sugar season 2018-19 (October-September) are as under:
(in Lakh Metric Ton (LMT))
| Sugar Season | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
| Diversion of sugar to Ethanol | 3 | 9 | 22 | 35 |
| Exports | 38 | 59 | 70 | 100 (estimated) |
India has now become the largest producer of sugar in the World & 2nd the largest exporter. Further, India is also the top consumer of sugar in the World. Consumption of sugar in India is consistently increasing at a growth of 2-4% per annum.
The export of sugar in the past few years has increased considerably due to timely and proactive policy decisions taken by the Government. The Government has been providing assistance to sugar mills to facilitate the export of sugar. However, considering the fact that the international prices of sugar during the current sugar season 2021-22, are on the higher side in comparison with the previous sugar season; the Government encouraged sugar mills to undertake the export of sugar without depending on any sort of financial assistance from the Government. As a result, even without extending any assistance to sugar mills, exports are likely to touch a figure of 100 LMT in the current sugar season 2021-22, which is an all-time high. However, at the same time, the Government has been continuously monitoring the progress of export so as to prevent any uncontrolled export of sugar and to ensure that sugar is available to domestic consumers at a reasonable price.
In the mid of May 2022, it was analyzed by the Government that by the end of May 2022, about 90 LMT of sugar is likely to be exported; & it was decided by the Government that in case restrictions on the export of sugar to a comfortable limit are not imposed on time, then, excess export of sugar may take place which would lead to scarcity of sugar in the country and may result in the uncontrolled increase of sugar prices in the months of September-November,2022.
The government of India is committed to maintaining stable prices of sugar in the domestic market and in the last 12 months, prices of sugar are under control. Ex-mill prices of sugar in India are range-bound between ₹ 3150 – ₹ 3500 per quintal while retail prices are also within control in the range of ₹36-44 in different parts of the country.
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