Government decides to put a cap on sugar exports to ensure domestic availability

The Union Government today decided to put a cap on sugar exports to ensure domestic availability. Briefing media in New Delhi today, Food Secretary Sudhanshu Pandey said, India's exports have reached a record high in this season and now domestic availability has to be ensured during October - November as consumption increases in the festive season.

He said, the decision has been taken in view of the global situation which may trigger the demand for sugar. Mr. Pandey added that it should not be seen as a curb. Global situation reflects a shortage of sugar, especially due to lower production in Brazil.

The Government is committed to stablise prices of sugar in the domestic market and in the last 12 months, prices of sugar are under control. Wholesale prices of sugar in India are range bound between Rs 3,150-3,500 per quintal while retail prices are also within control in the range of Rs 36-44 in different parts of the country.

Earlier, the Centre decided to allow export of sugar upto 100 Lakh Metric Tonnes. As per the order issued by Directorate General of Foreign Trade, with effect from 1st of June till 31st of October this year, 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 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 the sugar season 2020-21 against a 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 the current sugar season 2021-22 is the historically highest.

Production of sugar in the country is expected to be 17% higher than previous sugar season. Further, the country has been the top consumer of sugar in the World with about 278 LMT of sugar consumption in the current Sugar Season. Consumption of sugar in India is consistently increasing at nominal growth of 2-4% per annum. Per capita sugar consumption in India is about 20 Kg which is less than the global average.