The government will impose restrictions on sugar exports by June
To prevent the hike in prices of sugar in India and local markets, the government has decided to restrict the exports of sugar. The government has told the traders to secure permission for the overseas sale of sugar from June 1 to October 31. The development is taken to improve the availability of sugar in the domestic markets and audit the price rise.
A notification by the Directorate General of Foreign Trade notified that the export of the sugar will be placed under a restricted category from June 1 onwards. The restrictions are put up on raw, refined, and white sugar.
In accordance with the notification, the government has decided to allow the export of sugar up to 100 Lakh Metric Tonnes to maintain domestic availability and price stability during the sugar season 2021-22. The notification further stated “ With effect from 1 June 2022 till 31 October 2022, or till further order whichever is earlier, the export of sugar will be allowed with specific permissions of the Directorate of Sugar under Department of Food and Public Distribution.’’
The order mentioned that the restrictions on sugar export will not be applied to the EU and the US because they are under CXL and TRQ quotas. Economists believe that inflation has been the reason for the order. They said that RBI is not able to control the inflation successfully and that has prompted the Narendra Modi government to take stringent measures.
Piyush Goyal, the Minister of Commerce and Industry and Consumer Affairs tweeted “ The step from the government is welcome and is taken to ensure adequate domestic availability and stability in sugar prices across the country.” Earlier, the government banned the export of wheat and allowed it based on permission granted by other countries.