Indications of continuing ban on sugar exports at least till October

03-Jul-2024 05:53 PM

New Delhi. There has been an indefinite ban on sugar exports from India since last year and senior government officials have indicated that there will be no relaxation or concession in the export ban at least till October 2024. Changes in the sugar export policy can be considered only after reviewing the progress in sugarcane cultivation for the next season.

It is noteworthy that the apex industry body - ISMA, citing figures, has urged the government to allow exports. It says that at the end of the current marketing season, additional surplus stock of 35-36 lakh tonnes of sugar will remain, out of which some part should be allowed to export.

It is worth noting that India is the world's largest consumer of sugar and the second largest producer after Brazil. In June 2023, the government had decided to stop sugar exports till October and when there was a possibility of a decline in its domestic production,

the period of export ban was extended indefinitely. Along with this, the use of sugar in ethanol production was also limited. As a result, the supply and availability of sugar in the domestic sector remained smooth.
However, despite the ban on export,

some increase is being seen in the retail market price of sugar. According to official data, the average retail price of sugar increased to Rs 44.41 per kg on 30 June 2024, while on 20 June 2023 it was running at Rs 42.74 per kg.

According to official sources, good rainfall is being predicted in the country this year, but the sugarcane production area will determine whether sugar exports should be approved or not. At least there is no immediate review of this matter.

The imposition of ban on export has helped in controlling the unexpected rise in the price of sugar. If the ban had not been imposed, the price of sugar could have been much higher than the current level, which could have increased the difficulties of the common man even more.