Ample time given to sugar exporters, millers to apply for obtaining Export Release Orders: Centre
Jun 08, 2022
New Delhi [India], June 8 : The Central Government gave ample time to sugar exporters and millers to submit their applications on National Single Window System (NSWS) with regard to the restriction on exports of sugar beyond 100 Lakh Metric Tonnes (LMT).
Taking into consideration unprecedented growth in exports of sugar and the need to maintain sufficient stock of sugar in the country as well as to safeguard the interests of the common citizens of the country by keeping prices of sugar under check, the Government of India decided to regulate sugar exports with effect from June 1, 2022, and imposed restriction on the export of sugar beyond 100 LMT, the Ministry of Consumer Affairs, Food and Public Distribution said.
Applications were invited from sugar mills and exporters online on the NSWS portal for obtaining approvals in the form of Export Release Orders (EROs) from the Directorate of Sugar and Vegetable Oils, Department of Food and Public Distribution (DFPD) vide letter dated May 24, 2022.
All sugar exporters and millers were communicated to file an online application in the NSWS portal and were informed that the portal will be opened on June 1. Significantly, there was enough time for preparing the application and thereafter, filing it, the government data said.
Instructions for sugar mills and exporters were issued and posted on the website of DFPD. The applications were processed on a first come first serve basis in a timely manner. Since a large number of applications were received from sugar mills/ exporters for the quantity of more than 23 LMT till June 3, 2022, and as the quantity of only 10 LMT to be distributed among sugar mills/ exporters, so it was decided to distribute a quantity of only 10 LMT on pro-rata basis among sugar mills/exporters whose applications were received till June 3, 2022.
In the past few years also, whenever export quota was allocated among sugar mills it was allocated to sugar mills on a pro-rata basis; therefore, this time also in order to maintain transparency and to give an opportunity to all exporters/ sugar mills who have applied till 3rd June' 2022, Export Release Orders were issued on pro-rata basis.
During the past few years, sugar production in the country has been consistently more than domestic consumption thereby creating a surplus situation. In a view to addressing the problem of surplus sugar in the country, the Central Government has been encouraging sugar mills during the past few sugar seasons to divert surplus sugar to ethanol and is also facilitating sugar mills to export surplus sugar thereby improving the liquidity of sugar mills enabling them to clear cane price dues of farmers.
Export of sugar and diversion of sugar to ethanol during the recent times has also helped in maintaining demand-supply balance and stabilizing domestic sugar prices. Details of sugar export and diversion of sugar to ethanol since sugar season 2018-19 (October-September) are as under:
India has now become the largest producer of sugar in the world and the second-largest exporter. Further, India is also the top consumer of sugar in the world. Consumption of sugar in India is consistently increasing at a growth of 2-4 per cent per annum.
In May, India announced restrictions on the export of sugar to keep a lid on prices in the domestic market. This is the first time in six years that the Centre has placed a restriction on sugar exports.
