25 May 2022, New Delhi: The government has restricted sugar exports to 10 million tonnes in the current sugar season to prevent a spike in the domestic prices of the commodity.
Traders and exporters say this is only a precautionary measure that would not have much impact as the industry was expecting to export only about 9 mt sugar in the current season. The sugar season runs from October to September and new production will start arriving in the market once crushing starts again in four months.
Consumer inflation in sugar was 5. 54% in April, down from 6. 03% in the month before, bucking the trend of rising headline and food inflation. Overall, consumer inflation hit an 8-year high of 7. 79% in April.
The daily average retail price of sugar was ₹41. 55 on Tuesday against 39. 82 a yearago and ₹ 40. 68 a month ago, according to the data from the price monitoring cell of the Department of Consumer Affairs.
“We were anyway expecting to export somewhere around 9-9. 5 mt sugar during this season. This won’t hurt very badly,” sa-id a Mumbaibased trader who did not want to be identified.
With the start of the monsoon season, bulk trading in raw sugar will anyway stop, said a representative of a large sugarexporter adding that the restriction on exports is not going to hurt the trading community much.
Indian mills have so far signed contracts to export 8. 5 mt sugar in the current 2021-22 marketing year without any subsidy.