The government on Monday lifted the ban on sugar export by mills that had earlier imported raw sugar with a commitment to export the same quantity of refined sugar.
In 2004, when there was drought in Maharashtra, the government allowed mills to import raw sugar for processing and sale in the domestic market. Raw sugar was, however, imported under the advance licensing scheme with a commitment to export same quantity of refined white sugar within 12 months. This was later extended to 24 months.
So far, 2.3 million tonne of raw sugar was imported against which 1.1 million refined sugar was exported till July 4, 2006, when the ban on sugar exports was imposed by the government.
The government imposed the ban on July 4 this year when retail prices jumped to around Rs 21-22 a kg in various parts of the country. Sensing shortage, the government instituted a tariff rate quota (TRQ) mechanism for import of sugar against referential duty. But with global prices ruling high at around $ 450 a tonne on FoB, no substantial imports could take place.
The industry was long lobbying for lifting the ban saying there was sufficient stock in the country.