Govt will allow sugar exports upto 100 LMT
The government has decided to allow export of sugar upto 100 LMT with a view to maintain the domestic availability and price stability during the sugar season 2021-22 (October-September). As per the order issued by DGFT, with effect from June 1, 2022 till October 31, 2022, or till further order, whichever is earlier, the export of the sugar will be allowed with specific permission of the Directorate of Sugar, Department of Food & Public Distribution.
The decision came in the light of record exports of the sugar. In sugar seasons 2017-18, 2018-19 & 2019-20, only about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported. In sugar season 2020-21 against target of 60 LMT about 70 LMT have been exported. In the current sugar season 2021-22, contracts for export of about 90 LMT have been signed, about 82 LMT sugar has been dispatched from sugar mills for export and approx. 78 LMT have been exported. Export of sugar in current sugar season 2021-22 is the historically highest.
The decision will ensure that the closing stock of sugar at the end of sugar season (September 30, 2022) remains 60-65 LMT which is two to three months stocks (monthly requirement is around 24 LMT in those months) required for domestic use. Crushing in new season starts in last week of October in Karnataka and in last week of October to November in Maharashtra and in November in Uttar Pradesh. So generally, up to Nov, supply of sugar takes place from previous year stock.
