Centre approves sugar export applications of 62 mills totaling 10 Lakh MT

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Soon after the Union government restricted sugar exports to 100 lakh metric tonnes, on June 5 it approved the export of 62 sugar mills and exporters for a quantity of 10 lakh metric tonnes.

"Directorate of Sugar and Vegetable Oils, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, in exercise of powers conferred by Section 3 of the Essential Commodities
Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966, grant permission to exporters to export a total quantity of 10 LMT of sugar within 90 days from the date of this order," according to a notification dated June 5.

Between June 1 to June 3, the government received 326 applications from sugar mills and exporters requesting for issuance of Export Release Orders (ERO) for a quantity of 23,10,333 metric tons. These applications were received via the National Single Window System, the notification added.

On May 25, for the first time in 6 years, the government announced that it would restrict sugar exports to 100 lakh metric tonnes (LMT), beginning from next month. The decision was taken in a bid to soar the taming food inflation.

"With a view to maintaining domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), the central government has decided to regulate the sugar exports with effect from 1st June 2022 till further orders," the Ministry of Consumer Affairs, Food & Public Distribution had said.

Further, it was informed that sugar mills and exporters, from June 1 onwards, would need to take approvals in form of EROs from the Directorate of Sugar, Department of Food and Public Distribution.

Despite the restrictions, the export of sugar in the current sugar season 2021-22 will be the "historically highest", the ministry said.

In fact, a report by Ind-Ra expects the total exports for SS22 (Sugar Season 2022) to rise to 9-10 million tonnes, surpassing the previous high of 7.2 million tonnes shipped in SS21.

On June 2, Reuters reported that India has exported around 8.5 million tonnes of sugar since the current season began on Oct. 1, with exporters likely to contract another 1.5 million tonnes for overseas sales in the next five months.