According to a notification sent by the Indian government late on Friday, the export restrictions for sugar have been extended by one year, until October 2023. Due to a spike in local prices caused by record exports, the world’s largest sugar producer, India, imposed export restrictions in May that lasted until October 22, 2022. This article discusses the most recent developments and explains why the same has been prolonged for another year.
Latest Notification from DGFT on Sugar Export Ban
The government of India, the world’s largest sugar producer, notified through official notification dated 28th October on the DGFT’s portal that sugar export curbs will be extended by one year, to the end of October 2023. The notification mentions, “In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, in partial modification of Notification No.10/2015- 2020 dated 24th May. 2022, the Central Government hereby extends the dale of ‘Restriction’ on export of Sugar (Raw Sugar. Refined Sugar and White Sugar) under HS Codes 1701 14 90 and 1701 99 90 beyond 31”’ October, 2022 till 3111 October, 2023, or until further orders, whichever is earlier.
This restriction is not applicable to Sugar being exported to the EU and USA under CXL and TRQ quota as per prescribed procedure in the respective Public Notices.”
Thus, the ban on sugar exports doesn’t apply to sugar being exported to the EU and USA under CXL and TRQ quota. Hence, you can export sugar to these destinations provided you have all the legal registrations such as IEC Code Registration, AD Code Registration etc,
Statements from Officials on Sugar Exports
Officials predict India to grow a record-breaking crop of sugar cane this year, which may prompt New Delhi to authorize exports of up to 8 million metric tonnes.
It is projected that during the 2022–23 season, Indian sugar mills will divert 4.5 million metric tonnes of sugar for use in making ethanol, despite the fact that domestic consumption is forecast at roughly 27.5 million metric tonnes. Every year, refineries will stockpile at least 6 million metric tonnes of sugar.
Indian Sugar Mills Association on Sugar Exports
India may be able to ship out as much as 9 million metric tonnes of sugar in the 2022–23 season, claims the Indian Sugar Mills Association. Dealers have already begun making contracts to sell raw sugar for this season, cashing in on favorable worldwide prices.
Why Does the Government Ban Sugar Exports for One More year?
India has limited its sugar exports to 11.2 million tonnes for the current marketing year in an effort to maintain stability in local pricing following the sale of record quantities by Indian sugar mills abroad.
India has decided to keep export curbs on sugar in place until October 2023 due to many reasons. However, the main reason is to maintain stable prices of sugars in the Indian market. Furthermore, as per the latest updates, India has also prohibited wheat exports, reduced sugar exports, and permitted duty-free imports of soy oil and sunflower oil in an effort to bring inflation down from multi-year highs.
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