The government extended restrictions on sugar exports, beyond the end of October. This decision is aimed at stabilizing local sugar prices, fulfilling ethanol production mandates, and maintaining sufficient closing stock by the end of the sugar season.
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The government has decided to prolong the limitations on sugar exports beyond the end of October. This move is made to manage local sugar prices, meet ethanol production demands, and ensure an adequate closing stock at the conclusion of the sugar season.
In October 2022, the Directorate General of Foreign Trade (DGFT) categorized exports of raw, white, and refined sugar as restricted. This classification mandated exporters to obtain permission from the food ministry for overseas sales, and it was set to continue until further orders or October 31, 2023, whichever occurred earlier. The notification issued on Wednesday expands these restrictions to include organic sugar and extends the curbs indefinitely, without specifying a definite end date.
The DGFT notification clarified that the restriction does not pertain to sugar exports to the European Union and the United States under the CXL and TRQ quota systems.
India’s sugar season spans from October to September. The agriculture sector has been adversely affected by the weakest monsoon in five years, particularly impacting the sugarcane harvest in major producing states like Maharashtra and Karnataka.
“There is no impact on the sugar industry as such as it was anticipated amid weak monsoon taking a toll on production in key producing states. The government had to come up with a fresh notification as the existing one is expiring on 31 October,” said Atul Chaturvedi, executive chairman of Shree Renuka Sugars.
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