Indian Govt Caps the Sugar Exports to 10 Million Tonnes
The Indian Government restricted the sugar exports, only days after wheat exports were prohibited, in an effort to control food inflation and assure sugar availability in the domestic market. Sugar exports have been classified as ‘restricted’ with effect from 1 June 2022, according to the Ministry of Commerce and Industry, limiting sugar exports to 10 million tonnes until the season ends on 31 October 2022. The world’s second largest exporter of sugar is India.
Inflationary pressures, which have remained above the Reserve Bank of India’s upper limit for four months in a row, have prompted the government to implement stringent fiscal measures such as lower excise duties on petrol and diesel, as well as lower customs duties on raw materials such as plastic, steel, and cement. Consumer inflation hit an eight-year high of 7.79 percent in April.
According to the government, sugar mills and dealers with certain authorization will only be able to export sugar (including raw, refined, and white sugar) until October 31 or until new instructions are issued. Furthermore, the restriction does not apply to CXL and TRQ (Tariff-Rate Quota) quota exports to the European Union (EU) and the United States.
Indian Govt Caps the Sugar Exports
The government’s action is “welcome” and is being taken “to ensure appropriate domestic availability and stability in sugar pricing across the country,” said Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution, in a tweet Tuesday. According to the reports India is estimated to produce 35 million tonnes this season and use 27 million tonnes, quoting the Indian Sugar Mills Association. It has a surplus of 16 million tonnes, including as much as 10 million for exports, including last season’s inventories of roughly 8.2 million tonnes, it added.
Earlier this month, the government reversed its position as the world’s largest wheat exporter, stating that it will prohibit wheat exports in order to control growing local prices. Wheat exports will also be permitted, according to the administration, based on authorization provided to other nations to meet their food security needs and at the request of their governments.