The Central Government has extended restrictions on sugar exports till October 31 next year to increase the commodity's availability in the domestic market. Earlier, the sugar export was restricted till October 31, 2022.
"Restriction on export of sugar (raw, refined, and white sugar) is extended beyond October 31, 2022 till October 31, 2023, or until further orders, whichever is earlier. Other conditions will remain unchanged," the Directorate General of Foreign Trade (DGFT) said in its notification.
However, it also added that these restrictions will not be applicable to sugar being exported to the EU and the US under CXL and TRQ duty concession quotas. A specified amount of sugar is exported to these regions under CXL and TRQ (tariff rate quota).
This year India has been the highest producer and the second largest exporter of sugar in the world. The Indian government restricted sugar exports in May to contain a rise in domestic prices following record exports, according to a Reuters report. India has capped sugar exports at 11.2 million tonnes, to hold down domestic prices as sugar mills sold record volumes on the global market.
According to Reuters, a government official said that India is expected to produce a record sugar crop this year, which could allow exports to go up by around 8 million tonnes. The domestic sugar market in India consumes an estimated 27.5 million tonnes and mills are expected to divert 4.5 million tonnes of sugar for ethanol production in the 2022-23 season. Resulting in at least a 6 million tonnes carryover stocks for sugar mills.
India has been trying to rein in inflation with a ban on wheat exports, curbed sugar exports, and allowed duty-free imports of soy oil and sunflower oil, the report said.