After two years India opens sugar exports, allows 10 lakh tonnes despite lower output

Prices have been stable over the past few months: According to data with the Department of Consumer Affairs, the all-India retail price of sugar was Rs 44.67 per kg, almost similar a month ago and a year ago. The retail inflation too has come down in recent months, with the Consumer Price Index-based retail inflation recorded at -0.40 per cent in December 2024.

In June 2022, the Centre took measures to restrict sugar exports in order to ensure sufficient availability for domestic consumption at a reasonable price. However, the export of sugar to the EU and the US under the CXL Concessions and the Tariff Rate Quota (TRQ) were unaffected.

Monday, an order issued by the Ministry said, “Export quota of 10 LMT have been pro-rated amongst those sugar mills which operated in at least one sugar season amongst the last three sugar seasons by taking into account their average production of sugar during the last three operational sugar seasons i.e. 2021-22, 2022-23 and 2023-24…”

“All the sugar mills have been allocated a uniform export quota of 3.174% of their three years’ average production of sugar,” it said. The sugar mills in Maharashtra, larger, will get the maximum share of the quota — 3.74 LMT — followed by Uttar Pradesh at 2.74 LMT.

As per the order, mills can export either directly or through merchant exporters until September 30. They have the option to surrender quotas by March 31 or exchange them with domestic quotas to reduce transportation costs. The policy also allows mills to swap export quotas with domestic monthly release quantities through mutual agreements, subject to the Food Ministry’s approval.