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Adequate time given to sugar traders & exporters to file application: India

BNE News Desk


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Guwahati: The Government of India said today that it has given sugar exporters and millers adequate time to file their application on the National Single Window System (NSWS) regarding the ban on sugar exports exceeding 100 LMT.

Taking into account the exceptional rise in sugar exports and the necessity to maintain a sufficient supply of sugar in the nation, as well as to protect the interests of common residents by keeping sugar prices in line, the government of India decided to limit sugar exports beginning June 1, 2022, and put restrictions on sugar shipments exceeding 100 LMT.

Sugar mills and exporters were asked to apply online on the NSWS portal for permissions in the form of Export Release Orders (EROs) from the Directorate of Sugar & Vegetable Oils, Department of Food and Public Distribution (DFPD) by letter dated 24.05.2022.

All sugar exporters and millers have been notified to file online applications through the NSWS portal, which will be accessible on June 1. Notably, there was ample time to prepare the application and then file it.

Instructions for sugar mills and exporters have been issued and placed on the DFPD website. The applications were processed in a timely way on a first-come, first-served basis.

In previous years, whenever export quotas were allocated among sugar mills, they were allocated on a pro-rata basis; thus, this time, in order to maintain transparency and to give the opportunity to all exporters/ sugar mills who applied until June 3rd, 2022, Export Release Orders were issued on a pro-rata basis.

Sugar output in the country has continuously exceeded domestic demand in recent years, producing a surplus scenario. To address the problem of surplus sugar in the country, the Central Government has encouraged sugar mills to divert surplus sugar to ethanol and has also facilitated sugar mills to export surplus sugar, enhancing sugar mill liquidity and allowing them to settle farmers' cane prices dues. Sugar exports and sugar conversion to ethanol have also contributed to preserving demand-supply balance and stabilising domestic sugar prices in recent years.

BNE News Desk