Govt to announce sugar export quota for 2022-23 season in phases | The Financial Express

Govt to announce sugar export quota for 2022-23 season in phases

The exports quantity would be based on sugar production as the crushing of sugarcane has just commenced.

Govt to announce sugar export quota for 2022-23 season in phases
The government wants to keep the option of revising exports quota at a later stage. (IE)

The government is likely to announce sugar export quota for the new sugar season 2022-23 (October-September) in tranches for ensuring domestic availability and to curb any possibility of increase in prices during the year.

Sources told FE that learning from the experience of wheat exports where the government had abruptly put a ban on shipment of grain in May after committing for 10 million tonne (mt) of shipment in the current fiscal, the government was looking to ensure sufficient domestic sugar inventories prior to announcing exports quota at one go.

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While Indian Sugar Mills Association (ISMA) has stated that the country could easily export 8 mt of sugar in the 2022-23 season, the government is likely to announce an export quota of 5 mt initially and in the subsequent months after assessment of domestic production, the next tranche of export quote would be issued.

“We will be assessing the domestic supply situation closely and allow exports in phases,” an official told FE.

The exports quantity would be based on sugar production as the crushing of sugarcane has just commenced. The government wants to keep the option of revising exports quota at a later stage.

In the 2020-21 season, sugar exports rose to 7.1 mt and in the current season exports are likely to cross 11 mt. In sugar seasons 2017-18, 2018-19 and 2019-20, only about 0.6 mt, 3.8 mt and 5.9 mt of sugar was exported.

Meanwhile, the government has extended the curbs on sugar exports by one year till November 30, 2022 which implies restrictions on shipment of sweetener under open general licence regime.

The new sugar season (2022-23) has already commenced from October 1, while the government is likely to announce a quota also referred to as maximum admissible export quota (MAEQ) this week, according to an industry source.

The government followed MAEQ in 2020-21 and the open general license system in 2021-22.

According to ISMA, the country’s sugar output for the 2022-23 season (October-September) is estimated to be around 41 million tonne (mt) which includes around 4.5 mt to be diverted towards making ethanol. The domestic consumption would be around 27.5 mt.

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Meanwhile, the food ministry has extended the deadline for implementing the export release orders (ERO) of sugar issued for the 2021-22 season till November 30, 2022. It implies that the export quota issue in the previous crop year (2021-22) could be executed till November 30, 2022. An ERO is a permit issued to mills for exports of sugar.

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First published on: 31-10-2022 at 03:30 IST