Centre Extends Restriction On Export Of Sugar Beyond October

The extension of restriction in sugar export is not applicable to sugar being exported to the EU and the US

The government has extended restriction on export of raw sugar, white sugar, refined sugar, and organic sugar under some codes beyond October, according to an order dated Wednesday. As reported by news agency Reuters, the Director General of Foreign Trade (DGFT) has said this in its latest order on Wednesday.

However, the extension of restriction is not applicable to sugar being exported to the EU and the US, the notice further stated. Sources privy to the development told Reuters that in August India would ban mills from exporting sugar in the season beginning October, halting shipments for the first time in seven years, as a lack of rain had cut cane yields.

India, world's second-largest sugar exporter, last year had placed sugar in a restricted category until October 31, 2023 'to prevent uncontrolled export of sugar and with a view to ensure sufficient availability of sugar for domestic consumption at a reasonable price.' It allowed mills to export only 6.1 million tonnes of sugar during the current season ending on September 30, after letting them sell a record 11.1 million tonnes last season.

Domestic prices of sugar have remained elevated, up about 2.5 per cent in October, compared to a month back, according to ministry of consumer affairs data. The Consumer Price Inflation (CPI) for the commodity was recorded at 4.73 per cent in September.

Meanwhile, the CPI-based inflation for the month of September eased to 5.02 per cent as against 6.83 per cent in August, the lowest in three months, according to the data released by the National Statistical Office (NSO) last week. The inflation has come back to the Reserve Bank of India (RBI)'s comfort level of below 6 per cent after a gap of two months. It was at 7.56 per cent in September 2022. Food inflation fell to 6.56 per cent in September against 9.67 per cent in August.