Govt issues sugar export release orders for 10 lakh tonnes till June 3

The government on Wednesday said it has issued export release orders for 10 lakh tonnes of sugar on "pro-rata basis", out of the total applications of 23 lakh tonnes, till June 3.

The government has capped sugar exports at 100 lakh tonnes for the 2021-22 marketing year (October-September) with effect from June 1, due to which mills and exporters need to get approval in the form of 'export release orders' from the food ministry.

The country has already exported 86 lakh tonnes of sugar till May, as per industry data.

India had exported 70 lakh tonnes of the sweetener in the preceding marketing year.

In a statement, the food ministry said ample time was given to sugar exporters and millers to submit their application on the National Single Window System (NSWS).

The applications were processed on first-come-first-serve basis in a timely manner. The applications were received for export of more than 23 lakh tonnes till June 3, it said.

Since a large number of applications were received and as quantity of only 10 lakh tonnes had to be distributed among sugar mills / exporters, so it was decided to distribute it on pro-rata basis among those whose applications were received till June 3, it said.

In past few years too, whenever export quota was allocated among sugar mills it was done on pro-rata basis.

According to the ministry, the country's sugar exports in the past few years has increased considerably due to the government's timely and proactive policy decisions. The government had provided assistance to sugar mills to facilitate exports in last few years.

However, in the current 2021-22 marketing year, the sugar exports have been boosted without the government subsidy in view of high global prices.

As a result, even without extending any assistance to sugar mills, exports are likely to touch a figure of 100 lakh tonnes in the 2021-22 marketing year, which is an all-time high, it said.

However, at the same time, the government has been continuously monitoring the progress of outbound shipments so as to prevent any uncontrolled exports so as to ensure that sugar is available to domestic consumers at a reasonable price.

In mid-May, the government analysed that sugar export may touch 90 lakh tonnes by end of May and decided to restrict the shipments to prevent any domestic shortages and price rise, it added.

Sugar prices are under control in the last one year and the government is committed to maintaining stable prices of the commodity in the domestic market, it said.

Currently, ex-mill sugar prices are range bound between Rs 3,150 - Rs 3,500 per quintal, while retail prices are also within control in the range of Rs 36-44 per kg in different parts of the country, it added.