India on Saturday approved the export of 6 million tonnes of sugar between 2022 and 2023 in an effort to curtail unrestricted offshore sales and guarantee domestic supply.
Despite strong output, the Union government has implemented a number of restrictions on sugar shipments, primarily to contain rising inflation and direct more cane toward domestic ethanol production. However, analysts said that the export quota for the new sugar season was roughly in line with market expectations.
The government has "decided to assign sugar mill wise export quota of 60 lakh million tonnes (6 million tonne) of sugar for export for sugar period 2022-23, with impact from November 1, 2022," according to a notification sent to mills by the directorate general of foreign trade (DGFT) amending the export policy for the sugar season beginning November 1.
The Union government is attempting to quickly expand its ethanol-blending programme, which is why there are limits on the amount that may be exported. India will buy less oil if it mixes gasoline with ethanol, which is produced from molasses, a byproduct of sugar production.