Government allocates export quota of 60 LMT to sugar mills
New Delhi, November 6, 2022
The Government has allowed export of sugar up to 60 lakh metric tonnes (LMT) during the sugar season (SS) 2022-23.
A press release from the Ministry of Consumer Affairs, Food & Public Distribution said this was as part of the efforts to balance the price stability of sugar in the country and the financial positions of sugar mills in the country, based on initial estimates of sugarcane production.
The Directorate General of Foreign Trade has already issued a notification to extend the inclusion of sugar exports under "Restricted" category up to 31st October, 2023.
The release said the Central Government has prioritized availability of about 275 LMT of sugar for domestic consumption, about 50 LMT sugar for diversion to ethanol production and to have closing balance of about 60 LMT as on 30.09.2023.
"Balance quantity of sugar produced by sugar mills in the country would be allowed for exports. Since at the beginning of sugar season 2022-23, initial estimates of sugarcane production are available, it has been decided to allow export of 60 LMT sugar. The sugarcane production in the country will be reviewed periodically and based on the latest available estimates, quantity of sugar exports to be allowed could be reconsidered," the release said.
During SS 2021-22, India exported 110 LMT sugar and became the second largest exporter of sugar in the world and earned about Rs. 40,000 crore worth of foreign exchange for the country.
"Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers. As on 31.10.2022, more than 96% of cane dues of farmers for SS 2021-22 were already cleared despite record procurement of sugarcane of more than 1.18 lakh crore rupees," the release added.