To prevent uncontrolled export of sugar and with a view to ensure sufficient availability of sugar for domestic consumption at a reasonable price, GOI has decided to allow export of sugar up to a reasonable limit w.e.f 01.11.2022 to 31.10.2023.
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Gist of the policy :
1. All grades of sugar i.e. raw, white as well as refined sugar can be exported by a sugar mill / refinery / exporter up to the extent of 60 LMT allocated.
2.All the sugar mills have been allocated a uniform export quota of 18.23% of their 3 years average production of sugar in the operational sugar season.
3. The new sugar mills which may commence sugar production for the first time during the sugar season 2022-23 or the mills which were closed in previous three season but restart in season 2022-23 or the mills who have not been allocated quota will be allocated export quota of 18.23% of their estimated sugar production in sugar season 2022-23.
Modalities to undertake export of sugar are as under :
i) Sugar mills can export the quantity of sugar allocated either themselves or through merchant exporters/refineries.
ii) Mills who are not willing to export can surrender their quota (partially/whole) within 60 days from 05-11-2022
iii) If mills are not able to dispatch 90% of their export quota by 31.05.2023, then 30% of their un-exported quantity out of their allocated quota would be deducted from their monthly domestic quota of July / August, 2023.
iv) Mills can also exchange their export quota (partially/whole) with the domestic quota of any sugar mill within 60 days from 05-11-2022. This would reduce transportation costs involved in export of sugar and movement of sugar from one state to another for domestic consumption.
Modalities for exchange of export quota from the quantity of monthly release quota are as under:
i) Those sugar mills which do not wish to export the allocated quantity (whole/partial) allocated to them may exchange their quantity with the month release quota of any other sugar mill which is willing to take the additional export quantity for export.
ii) The sugar mills involved in such exchange of their export quota with domestic monthly release quantity are required to enter into an agreement and submit it to DFPD for reallocation of their export quota, as well as monthly release quantity.
iii) The export quota exchanged with monthly release quota can be adjusted by the end of the current sugar season 2022-23 i.e. by 30.09.2023. Therefore, sugar mills should apply for reallocation after considering their average monthly release.
iv) DFPD will issue orders for exchange for domestic quota with export quota on a weekly basis.
4. Exporters can export only the export quantity allocated to sugar mills. They are not allowed to purchase sugar from the open market / domestic quota for export purposes.
5. Since, raw sugar is either directly exported by a sugar mill or after value addition of such raw sugar by refinery or a mill having a refining capacity and thereafter, it is exported in theform of refined sugar, therefore, customs authorities may allow export of such refined sugar by the refinery / sugar mill/exporter provided the quantity is within the export quota allocated to a sugar mil. For this purposethe raw /white sugar manufacturer, the sugar refinery & exporter shall enter into bi-partite / tri-partite agreement.
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