Indian government extends sugar export restrictions beyond October 31
Published on: October 19, 2023.
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DGFT Extends Restriction on Sugar Export, Except to EU and USA
The Directorate General of Foreign Trade (DGFT) announced on Wednesday that the restriction on the export of all varieties of sugar has been extended beyond October 31. However, this restriction does not apply to sugar being exported to the European Union (EU) and the United States (USA) under the CXL and TRQ quota, as stated in the respective public notices.
India, known as the world’s second-largest sugar exporter last year, placed sugar in a restricted category until October 31, 2023. This decision was made to prevent the uncontrolled export of sugar and ensure sufficient availability of sugar for domestic consumption at a reasonable price.
During the current season ending on September 30, India allowed mills to export only 6.1 million tonnes of sugar, compared to a record-breaking 11.1 million tonnes last season.
Monsoon rains in the major sugarcane-growing districts of Maharashtra in the western state and Karnataka in the southern state have been significantly below average this year, with a deviation of up to 50% based on data from the weather department. These two states account for more than half of India’s total sugar output.
The Indian Sugar Mills Association (ISMA) predicts that India’s sugar production could decrease by 3.3% to 31.7 million tonnes in the 2023/24 season.
In 2016, India previously imposed a 20% tax on sugar exports to control overseas sales.
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