The government is likely to continue the restriction on export of sugar beyond October to ensure “comfortable supply levels” to meet domestic demand and keep prices under check during this festival season and the 2024 election year.
It has also decided to keep the minimum export price (MEP) of basmati rice unchanged at $1,200 per tonne “till further orders” to ensure adequate availability for domestic consumption.
But this has come as a blow to basmati growers and exporters as they were demanding a reduction ofMEP to around $900. The decision comes barely a day after the government extended the 20% export duty on parboiled rice till March next year. In September 2022, India had banned broken rice exports.
Regarding export of sugar, sources said the food ministry has conveyed the “decision” of the committee of ministers to the commerce ministry to put it under the ‘restricted’ category. A notification to this effect is likely to be issued soon.
“There’s no plan to put a ban on sugar exports. The government will take decisions considering all aspects, particularly to protect our consumers and make this available at affordable price,” said an official.
At present, sugar is under the ‘restricted’ category, meaning mills can apply for an export quota. So, the possibility of the government setting a limit and MEP for sugar are very high, sources said. This will be done considering the sugar production and estimated domestic consumption, including its diversion for ethanol production, sources said.
Export check on sugar was imposed from June last year, with the setting of mill-wise quotas. A total of 6.2 million tonnes (MTs) of sugar was exported by millers during 2022-23 crop year.
Though the official output estimate is not yet out, sources said sugar production between October and September (2023-24 season) may be around 28 MTs, down from 30 MTs last year. The average retail price of sugar has increased from Rs 42.5 a kg to Rs 44 a kilo in last one year.
Meanwhile, the ministerial committee has approved exports of 1.34 MTs of non-basmati white rice to seven countries from Asia and Africa through National Cooperative Export Ltd (NCEL).
