Guwahati: The Government of India has decided to restrict sugar exports beginning June 1 in order to maintain an adequate stock of sugar in the nation and to protect the interests of common folks by keeping sugar prices under control.

The government has agreed to allow sugar exports of up to 100 LMT (lakh metric tonnes) in order to preserve domestic supply and price stability during the sugar season of 2021-22 (October-September).

According to the decision issued by the Directorate General of Foreign Trade (DGFT), sugar exports will be permitted with the authorization of the Directorate of Sugar, Department of Food and Public Distribution, from June 1, 2022, to October 31, 2022, or until further order, whichever is sooner.

The decision was made in light of record sugar exports. Only roughly 6.2 LMT, 38 LMT, and 59.60 LMT of sugar were exported during the sugar seasons of 2017-18, 2018-19, and 2019-20, respectively. In the sugar season 2020-21, 70 LMT were exported against a target of 60 LMT. During the current sugar season 2021-22, around 90 LMT of contracts for export have been signed, approximately 82 LMT of sugar has been dispatched from sugar mills for export, and approximately 78 LMT has been shipped. Sugar exports are at an all-time high in the current sugar season (2021-22).

The decision will ensure that the closing stock of sugar at the conclusion of the sugar season (30th September 2022) stays 60-65 LMT, which is 2-3 months of stocks (monthly demand in those months is about 24 LMT). Crushing in the new season begins in the final week of October in Karnataka, in the last week of October to November in Maharashtra, and in November in Uttar Pradesh. Typically, up to November, sugar is supplied from the previous year's stock.