The export restriction on sugar have stabilised domestic sugar prices as per Economic Survey 2024 released on July 22. The prices have remained stable amidst global sugar prices volatility since last year.
“These export restrictions have indeed played a role in stabilising domestic sugar prices,” the Economic Survey 2024 stated. As a result, “Even though the global sugar price index inflated and has been showing volatility since February 2023, domestic sugar prices have remained much less volatile,” it added further.”
India, world’s second-largest producer of sugar, has placed an indefinite ban on export of sugar due to the need to keep a check on domestic prices and to ensure sufficient local supplies, and managing sugar inflation. This ban first came into effect in June 2022. However, this was further extended in October 2023 until further notice. The government extended the date of restrictions on the export of sugar– raw sugar, white sugar, refined sugar and organic sugar.
In May, as per Indian Sugar Mills Association (ISMA) the country’s sugar production crossed 30 million tonne till March 2024. The sugar mills association also revised the net sugar production estimate for 2023-24 season to 32 million tonne against a consumption of around 28.5 mt, it recommended the government to export.
However, these restrictions are not applicable to sugar being exported to the EU and the US under schemes like tariff-rate quota (TRQ) and CXL duty. Mauritius benefits from preferential market access to India for its products such as frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, etc.
