India imposes restrictions on sugar exports from June 1
In a significant move, the government placed restrictions on sugar exports today to prevent a surge in local prices.
According to reports, the govt has told traders to secure permission for overseas sale of sugar from June 1 to October 31.
The move primarily seeks to improve availability of the sweetener in the domestic market and check price rise.
"Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards," the Directorate General of Foreign Trade (DGFT) said in a notification.
As per the notification, "The government has decided to allow export of sugar up to 100 LMT (Lakh Metric Tonnes) 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 1st June, 2022 till 31st October, 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 and Public Distribution," it added.
These restrictions won't apply to sugar being exported to the EU and the US under CXL and TRQ, the notification added.
It is worth noting here that a specified amount of sugar is exported to these two regions under CXL and TRQ.
Earlier today, there were reports about speculations that the Centre was planning such a step.
This is for the first time in six years that India has done so with sugar exports.
News agency Reuters had earlier reported that India may cap this season's exports at 10 million tonnes.
India is the world's biggest producer of sugar and the second biggest exporter after Brazil. The move by India, according to experts, has the potential to impact prices worldwide.
India's restriction is similar to steps introduced by many other governments in the wake of the Ukraine war that has led to food prices rising sharply in many parts.
Some of these include Malaysia's exports halt on 3.6 million chickens from June 1, Indonesia's recent palm oil export ban, India wheat export restriction. Some other nations have placed quotas on grain shipments.