INDIA: India has extended its sugar export restrictions indefinitely, according to a report from the United States Department of Agriculture (USDA). The move is a continuation of a previous export ban that was set to expire on October 31, 2023. The restrictions will affect the global sugar market, except for exports to the United States and the United Kingdom.
The Ministry of Commerce and Industry and the Directorate General of Foreign Trade (DGFT) amended the export restriction on sugar beyond October 31, 2023, to an indefinite period. The export of sugar under the CXL concession quota with the United Kingdom and the tariff-rate quota (TRQ) with the United States are unaffected.
The restrictions apply to the export of raw, white, refined, and organic sugar under HS codes 17011490 and 17019990. The move could have significant implications for the sugar industry, as India is one of the world’s largest sugar producers and exporters.
The USDA report notes that the Indian government has not officially endorsed the report and that the information contained in the report is retrieved from the Directorate General of Foreign Trade and the Ministry of Consumer Affairs, Food and Public Distribution. The report also cautions that price changes of any product are subject to market trends, production, government price support, and regulations as interpreted by Indian officials during the crop year.
The move is a continuation of a sugar export ban that was imposed between June 1 and October 31, 2022, which was subsequently extended to October 31, 2023. For the sugar marketing year (MY) 2022/23, India put the export cap at 6.1 million metric tons (MMT) of sugar, compared to previous years when the cap was set at 5 million MMT.
The report highlights that the United States Trade Representative (USTR) allocated 8,606 metric tons of raw value (MTRV) of cane sugar to India under the TRQ for fiscal year 2024 (from October 1, 2023, to September 30, 2024). The European Union also allocated the export of 5,841 MT of sugar from India for the same period.
The move by India to extend its sugar export restrictions indefinitely could have significant implications for the global sugar market. While the United States and the United Kingdom are exempt from the restrictions, other countries will be impacted. The move is a continuation of a previous export ban and highlights the challenges facing the sugar industry in India and around the world.
Photo by Plato Terentev: https://www.pexels.com/photo/unrecognizable-asian-farmers-collecting-sugar-cane-in-countryside-5909696/
