Govt Issued Updated Guidelines for Sugar Exports

In development to the statement that sugar export was allowed for 6 million tonnes for 2022-23, Commerce Minister Piyush Goyal tweeted the guidelines released by the government for the sector during the season.

These guidelines informed the chief executive officers and managing directors of the mills via a statement that the government decided to allow export of sugar up to reasonable limit till October 31, 2023. In this regard, the government has decided to allocate sugar mill-wise export quota if 6 million tonne for the export of 2022-23.

All grades of sugar, raw, white as well as refined can be exported up to the extent of quantity mentioned.

It said export quota of 6 mt have been pro-rated amongst the last three sugar seasons by taking into account their average production of sugar achieved by the sugar mills.

The guidelines said all the sugar mills had been allocated a uniform export quota of 18.23 per cent of their estimated sugar production in the season, duly verified by the respective cane commissioner.

Mills can export quantity of sugar either themselves or through exporters or refineries. For those mills which are not able to dispatch 90 per cent of their export quota by May 31, 2023, 30 per cent of the un-exported quantity out of their allocated quota would be deducted from their monthly domestic quota of July/August 2023.

It also said mills can exchange their export quota (partially/whole) with domestic quota of any other sugar mill within 60 days from the date of issuance of this order.

The guidelines said custom authorities would ensure that sugar will be exported by sugar mills/exporter/domestic refineries on the basis of export quota allocated to mills. However, in case of group sugar mills, sugar can be exported from any mill of the group by furnishing a bi-partite/tri-partite agreement between the source sugar mill, sugar mill to whom export quota has been allocated and merchant exporter/refinery.

Exporters/sugar mills/refinery can export only the export quota quantity allocated to sugar mills and sugar bought from open market or from domestic quota of mill is not allowed to be exported by any sugar mill/exporter or refinery.