The Union Minister of State for Consumer Affairs, Food and Public Distribution, Ms. Sadhvi Niranjan Jyoti in a written reply to a question in Lok Sabha today informed that since, sugar season 2010-11(Oct-Sept), there has been surplus production of sugar in the country (except in sugar season 2016-17 due to drought)as against the domestic consumption. In previous sugar season 2020-21, about 310 Lakh Metric Ton (LMT) of sugar was produced (after discounting diversion of 22 LMT of sugar to ethanol) by Indian sugar mills against domestic consumption of 265 LMT. Further, against the estimated domestic consumption of 270 LMT in sugar season 2021-22, the sugar production is estimated to be around 308 LMT (after discounting estimated diversion of 35 LMT of sugar to ethanol).
With a view to facilitate export of surplus sugar thereby improving liquidity of sugar mills and enabling them to clear cane price dues of farmers, Government has been extending assistance to sugar mills. Details of export of sugar in past five years is as under:
| Sugar Season | Quantity exported(LMT) |
| 2017-18 | 6.2 |
| 2018-19 | 38 |
| 2019-20 | 59.6 |
| 2020-21 | 70 |
| 2021-22 | 26.5 (up to 31 Jan. 2022) |
Till date, contracts of about 40 LMT have been signed for export of sugar in current sugar season 2021-22 and that too without announcement of any export subsidy. It is also estimated that in sugar season 2021-22, about 50-60 LMT of sugar is likely to be exported by domestic sugar mills. Till 31 January 2022, 26.5 LMT sugar has been exported by mills.
Further, to facilitate export of surplus sugar from country, custom duty on export of sugar has been withdrawn by the Central Government w.e.f. 20.03.2018
Due to surplus production of sugar in the country since sugar season 2017-18, the Central Government has imposed 100% custom duty on import of sugar under OGL to prevent import of sugar and thereby to safeguard the interest of sugar cane farmers.
However, import of raw sugar is valid under Advance Authorisation Scheme (AAS) under which raw sugar is imported in the country and re-exported after refining it. Such quantity of sugar which is imported under AAS cannot be sold in domestic market and can be re-exported only. Details of sugar imported in last five years given below as:-
| Financial Year | Quantity of Sugar imported in lakh Metric Tonne (LMT) |
| 2017-18 | 23.91 |
| 2018-19 | 14.98 |
| 2019-20 | 11.15 |
| 2020-21 | 19.63 |
| 2021-22* | 2.8 ( up to 30th Nov. 2021) |
