Government considering export of limited quantity of special quality sugar

07-Feb-2025 06:26 PM

The Indian government is considering the possibility of allowing the export of a limited quantity (15,000 tonnes) of special quality sugar, which would be exempt from any control restrictions.

Currently, the export of general category sugar is restricted, with only the sugar within the government's fixed export quota allowed to be shipped.

Special quality sugar, however, could potentially be exported regularly, albeit with an annual quota set for its shipment.

At present, the 10 lakh tonne quota for sugar exports does not distinguish between regular and specialty sugars, though specialty sugar is seen as a value-added product.

The proposal was first discussed by an inter-ministerial panel at the end of January, with the Commerce Ministry putting forward the idea.

However, the proposal was postponed due to insufficient information. The Ministry is currently gathering more data, and once the process is completed, the proposal may be revisited.

The concern about the export of industrial sugar stems from instances where exporters have been shipping general category sugar under the guise of industrial sugar.

Therefore, strict measures will need to be put in place to prevent any irregularities before allowing specialty sugar exports.

Even though 15,000 tonnes is a small amount compared to India’s annual sugar production, the government wants to ensure that no issues arise in the process. Specialty sugars include products like brown sugar, icing sugar, and golden syrup.