The directorate general of foreign trade (DGFT) on Wednesday notified its decision to allow sugar exports of 5,841 tonnes to the EU and 8,606 tonnes to the US under the quota systems there at zero or concessional duties in the marketing year through September 2023. This quantity is usually kept outside the ambit of any limit on sugar exports.
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The government has permitted sugar exports of six million tonnes for 2022-23. It will review the domestic demand-supply situation before allowing more exports. It was forced to cap sugar exports at 11.2 million tonnes in the last marketing year after a spike in outbound shipments threaten to deplete local stocks.
According to the DGFT notification, the exports of the stipulated quantity of sugar to the EU and the US are through the tariff rate quota (TRQ) or the CXL.
According to an estimate by the Indian Sugar Mills Association (ISMA), the country’s net sugar production, after factoring in diversion of cane juice for making ethanol, would be to the tune of 36.5 million tonnes. It has estimated consumption to be about 27.5 million tonnes. This leaves the scope for an export of nine million tonnes, without upsetting carryover domestic stocks of about six million tonnes.
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