Govt imposes restrictions on sugar exports from June 1

The government has imposed restrictions on sugar exports from June 1 to maintain domestic availability and price stability. In a notification by the Directorate General of Foreign Trade (DGFT) it states that the restriction has been imposed “in order to maintain domestic availability and price stability of sugar”. 

“With effect from 1st June, 2022 upto 31st October, 2022 or until further orders, whichever is earlier, export of sugar is allowed only with specific permission from Directorate of Sugar, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution,” the notification said.

Detailed procedure to issue permission for export will be issued by the Department of Food and Public Distribution (DFPD), it added. 

The notification also mentions that the export restriction is not applicable to EU and the US, under the CXL and TRQ quota. 

Export of sugar after June 1 will only be allowed after production of specific permission from Directorate of Sugar, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution. 

A Reuters report had earlier stated that sugar exports this season could be capped at 10 million tonnes.

India is the world's biggest sugar producer and the second biggest exporter after Brazil. Lower sugar output in Brazil and high oil prices which encourage mills there to produce more sugarcane-based ethanol have spurred global price gains.

Following reports of a possible sugar export restriction, sugar stocks fell up to 14 per cent in the afternoon session on Tuesday.  Shree Renuka Sugars was the top loser in the afternoon session after the mid cap stock fell 13.84 per cent to Rs 41.4 against the previous close of Rs 48.05 on BSE.

Also read: Sugar stocks crash up to 14% on plan to restrict exports

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