To control the rising inflation in the country, the Government of India has been in action and is continuously taking tough decisions. Earlier the agriculture export of wheat was banned and now the government restricts sugar export as well. However, certain conditions are excluded from this restriction. As per the announcement, sugar exports have been restricted to 100 Lakh Tonnes that too to selected countries.
Government Restricts Sugar Export: This restriction will come into effect from June 1, 2022, and will continue till further orders. The government has said that this step will not only help in checking the price rise of sugar but will also increase the availability of sugar in the domestic market.
It should be noted that this is for the first time in the last six years, that the export of sugar is being banned or restricted. The government wants to keep an additional sugar stock of at least two to three months to meet domestic needs. According to the data, in the current sugar season, India has signed a contract to export 90 Lakh Tonnes of sugar. Out of which about 78 Lakh Tonnes of sugar have been already exported.
Sugar price is a concern
At present, the price of sugar in the wholesale market is ₹3150 to ₹3500 per quintal. At the same time, its retail price is running from ₹36 to ₹44 per kg. Due to more exports, the price of sugar in the country has started rising.
In a notification issued by the Directorate General of Foreign Trade (DGFT), it was said that “Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022, onwards’’. The government has made it clear that this restriction will not apply to sugar being exported to the European Union (EU) and the US under CXL and TRQ. There will be a ban on exports to other countries.
The big sugar market
India is number one in terms of the production of sugar and second in the world in terms of exports. Only Brazil exports more sugar than India. Most of the sugar exports from India are to Indonesia, Afghanistan, Sri Lanka, Bangladesh, United Arab Emirates, Malaysia and African countries. States like Uttar Pradesh, Maharashtra and Karnataka are among the largest producers of sugar in our country. These three states account for 80 % of the country’s total sugar production.
With this ban, the government wants to ensure that there is full availability of sugar in the country and that prices remain stable during the festive season in October-November. At present, sugar prices are ‘far more stable’ than other commodities, but a global sugar shortage could lead to an abnormal rise in price. Sensing such a situation, the government has taken this ‘precautionary’ step.
Let us see how this move of the government changes the situation in China. Download the Bijak App to connect with sugar merchants and get accurate price information.