“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 interests of the common citizens of the country by keeping prices of sugar under check, Government of India has decided to regulate sugar exports from June 1, 2022,” the food ministry said.
Sugar mills and exporters need to take approvals in the form of Export Release Orders (EROs) from the food ministry.
As per the new guideline, sugar exports have been up to May 31. For exports through bulk and break-bulk vessels, if shipping bill is filed and if their allocation number is allocated by May 31, such vessels will be allowed to proceed for load and export without any approval or release order.
For exports between June 1 and October 30, Export Release order will be required.
Similarly, sugar millers will have to submit the daily dispatch of sugar for export till May 31. They would need to submit consolidated figures on June 1, and are required to apply to the government seeking approval for dispatch of sugar for export from June 1 onwards.
According to official data, in sugar seasons 2017-18, 2018-19 and 2019-20, about 6.2 lakh, 38 lakh and 60 lah tonnes of sugar was exported.
In the sugar season 2020-21 against a target of 60 lakh tonnes about 70 lakh tonnes have been exported.
Contracts for export of about 90 lakh tonnes have been signed in the current sugar season 2021-22 and about 82 lakh tonnes sugar has been dispatched from sugar mills for export.
Export of sugar in the current sugar season 2021-22 is historically the highest, the ministry said.
While announcing this fresh regulation on sugar export, the ministry said the government will allow export up to 100 lakh tonnes so that closing stock of sugar at the end of sugar season (September 2022) remains 60-65 lakh tonnes which is 2-3 months’ stocks. India consumes around 24 lakh tonnes of sugar every month.
The government said crushing in the new season starts in October and November. So generally, up to November, supply of sugar takes place from previous year stock.