The sugar industry in India is facing a major setback due to a decline of 32 million tonnes in sugar production this season. In response, the Central Government has decided to ban the export of sugar to maintain the availability of sugar in the country at affordable prices. The Committee of Ministers (CoM) reviewed the situation and decided that there is an urgent need to stop the dispatch of export sugar from sugar mills. The Union Minister for Consumer Affairs, Food and Public Distribution has been advised to approve the proposal to immediately ban the dispatch of sugar for export from sugar mills.
Necessary measures for affordable prices
The rise in sugar prices can affect consumer inflation, and sugar access to the weaker sections at an affordable price can be affected. Therefore, it is crucial to take the necessary measures to maintain the availability of sugar at affordable prices. The government estimates 327 million tonnes of sugar this season, compared to 359 lakh tonnes produced last year. Sugar mills have informed the government about dispatching 58.04 million tonnes of sugar for export from November 2022 to April 2023.
Although most of the sugar has been exported out of the fixed quota for the current year, approximately two million tonnes of sugar has not yet been dispatched for export. Its exports may be affected by this decision of the government. India is a major exporter of sugar, with Bangladesh being the largest importer, followed by Djibouti, Iraq, Somalia, Sudan, Indonesia, Sri Lanka, United Arab Emirates, China, Saudi Arabia, Libya, Afghanistan, Cameroon and Jordan.
In conclusion, the government’s decision to ban sugar export aims to maintain the availability of sugar in the domestic market at affordable prices. This decision will impact the export of sugar for this year’s remaining two million tonnes of unsold quota. The government’s move is a proactive measure to safeguard ordinary people’s interests and ensure they have access to sugar at a reasonable price.