Directorate General of Foreign Trade (DGFT) this morning announced that it would be placing restrictions on sugar exports, with the aim of maintaining availability of the product in the domestic market and also keep the prices in check. These restrictions will be imposed from June 1. As such, the traders must seek permissions for overseas sale of sugar.
The statement also said that until at least October 31, sugar exports will be limited to 10 million tonnes. The regulatory body might change this date as per the marklet conditions later.
DGFT said, “With a view to maintain the domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), the Central Government decides to regulate the sugar exports w.e.f 1st June, 2022; Govt will allow sugar exports upto 100 LMT.”
Nevertheless, these restrictions will not apply to exports directed to EU and the US under CXL and TRQ. This is in view that India exports a specific amount of sugar to both these destinations and that should continue.
Russia-Ukraine war has put a serious strain on food grains and products all over the world. Considering the uncertainty that prevails regarding essential food grains, prices are increasing, and the common man is feeling the burn.
Besides Sugar, India recently banned wheat exports and it is not the only country to restrict food exports. While Indonesia recently banned palm oil exports, Malaysia will stop export of 3.6 million chickens from June.