After wheat, rice and onion, India is mulling restrictions on exports of sugar to keep a check on prices and ensure supply in the country. Sources said that the department of consumer affairs is in favour of such export restrictions.
“There could be restrictions or a very limited quota on outbound shipments,” an official in the know of the development said.
The final decision on allowing sugar exports from India during the upcoming sugar season which starts from October 1 will be taken after mid October, said people aware of the matter.
The last time India imposed a 20% tax on sugar exports to curb overseas sales was In 2016.
India’s retail inflation in August was 6.83% and food inflation eased to 9.94% in August from 11.51% in July.
As sugar prices continue to gradually move upwards, despite a higher quota for both August and September, coupled with reports of crop damage due to scanty rainfall in August. India’s sugar production could fall 3.3% to 31.7 million tonnes in the 2023-24 season.
In August rainfall 36% below normal with main producer states such as Maharashtra witnessing extreme dryness in certain areas Unhappy with the rising sugar prices, the central government has issued mandatory stock disclosure orders for all the stakeholders of the sugar industry and released an additional 13 lakh tonnes of sugar for September taking
quota for the month to 38 lakh tonnes.
This came after the government and industry both assured that there is enough sweetener for this year and that there would be no scarcity in the next year either.
Earlier food secretary Sanjeev Chopra had said that the country has 85 lakh tonnes of sugar, enough for three and a half months and hence there won’t be any sharp increase in prices during the festive season.
The government allowed export of around 6 MT of sugar in sugar season 2022-23 compared to 11 MT in the previous year.