The directorate general of foreign trade (DGFT) on November 16 notified its decision to permit sugar exports of 8,606 tonnes to the US and 5,841 tonnes to the EU under the quota systems there at zero or concessional duties.
India, the second-largest producer and consumer of sugar worldwide, has a preferential quota agreement for sugar export with the European Union. After a surge in outbound shipments threatened to deplete local supplies, it was forced to set a limit on sugar exports at 11.2 million tonnes in the current marketing year.
For the years 2022–2023, the government has approved six million tonnes of sugar exports. Before approving greater exports, it will assess the domestic demand-supply balance. After a surge in outgoing shipments threatened to deplete local supplies, it was compelled to set a limit on sugar exports at 11.2 million tonnes in the most recent marketing year.
The DGFT notification states that the TRQ or CXL are the only options for exporting the required amount of sugar to the EU and US.
The Indian Sugar Mills Association (ISMA) calculated that the nation's net sugar production would amount to 36.5 million tonnes after accounting for the diversion of cane juice for ethanol production. An estimated 27.5 million tonnes are consumed annually. Without disrupting carryover domestic stocks of about six million tonnes, this leaves room for a nine million-tonne export.
India surpassed Brazil to be the second largest sugar exporter, after Thailand during the sugar season 2021-22. A record of more than 5000 LMT of sugarcane was produced out of which about 3,574 LMT of sugarcane was crushed by sugar mills to produce about 394 LMT of sugar.
On the other hand, India signed a contract for the export of around 35 lakh tonnes of sugar in the ongoing 2022-23 season, of which 2,00,000 tonnes were transported last month, ISMA told media today.
