Centre extends ban on sugar exports for another year.

October 31, 2022

The central government has extended the restriction on the export of sugar for one more year starting from the 31st of this month to raise its availability in domestic markets and control prices.
The Directorate General of Foreign Trade’s (DGFT) order of October 28 to extend the ban on sugar exports for one more year has been followed by another order issued by the Department of Food and Public Distribution (DFPD) on the same date that has extended the deadline for implementing the export release orders (ERO) of sugar issued for the 2021-22 season for another month till November 30, 2022.
An ERO is a kind of permit that mills are issued to export sugar based on certain parameters and criteria.
India’s sugar production in 2022-23 season is estimated to be around 41 million tonnes without accounting for 4.5 million tonnes diverted towards making ethanol which would be almost 1.8 million tonnes or 4.6 per cent more the estimated production of the current season.
According to Indian Sugar Mills Association (ISMA), diversion of sugar for producing ethanol is estimated to be around 4.5 million tonnes in 2022-23 season, as against 3.4 million tonnes in 2021-22 season.
After accounting for diversion towards ethanol, sugar production in the 2022-23 season is expected to be around 36.5 million tonnes, while the consumption is projected to be around 27.5 million tonnes next season.
As per the notification, the restriction is not applicable to Sugar being exported to European Union and the USA.