The government announced that it would limit sugar exports to 10 million metric tons (LMT) to curb food inflation next month. “To maintain the domestic sugar supply and price stability in the 2021-22 sugar season (October-September), the central government has decided to supervise sugar exports from June 1, 2022, until orders are placed.” Ministry of Consumer Affairs, Food and Public Distribution Department said.

Export restrictions are designed to ensure sugar ending stocks as of September 30 2022, “stay at 60-65 LMT, which is 2-3 months of stock for domestic use (monthly demand for these months is about 24 LMT)”, the statement added. It further said that from June 1, sugar mills and exporters would need to obtain approval from the Sugar Directorate of the Ministry of Food and Public Distribution in the form of an Export Release Order (ERO).

The move comes days after the centre imposed a ban on wheat exports, which have been sluggish due to the heatwave. The ministry said that despite the restrictions, sugar exports for the current 2021-22 season would be at an “all-time high”, the ministry said.

For the current 2021-22 sugar season, about 90 LMT of export contracts have been signed, the government said, adding that “about 82 LMT of sugar has been shipped from sugar mills for export and about 78 LMT has been exported”.

Instead, it noted that the sugar seasons of 2017-18, 2018-19 and 2019-20 were around 6.2 LMT, 38 LMT and 59.60 LMT, respectively. “For the 2020-21 sugar season, exports are around 70 LMT, while the target is 60 LMT,” the statement added.

According to the government, “The wholesale price of sugar in India is between Rs 3,150 and 3,500 per quintal, while the retail price in different parts of the country is also between Rs 36 and 44.” “The Indian government is committed to maintaining the stability of sugar prices in the domestic market, which have been under control for the past 12 months,” it said.

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Notably, India is the world’s largest sugar producer and second-largest sugar exporter this year. “Due to the regular efforts of the Indian government, despite the record high sugar production, 99.5 per cent of the cane fee for the last sugar season 2020-21 has been paid, and about 85 per cent of the cane fee paid for the current 2021-22 sugar season has also been released to farmers,” the statement said.