Govt partially lifts ban on sugar export

NEW DELHI: The Centre has notified partial lifting of the ban on sugar exports following easing of domestic prices and adequate supply, ending days of anxiety for the sugar industry which had feared that any delay could harm their prospects in view of the fall in global prices.

The notification by DGFT (director general of foreign trade) would allow exports against advance licences that stipulates re-export of white sugar against import of raw sugar.

This would apply to advance licence holders who could not meet export obligations before July 4, 2006 as the government then banned sugar exports to augment domestic availability.

Meanwhile, prices of medium sugar declined on the Vashi wholesale market on Thursday due to lack of demand. Medium sugar fell to Rs 1,580/1,670 per quintal from the previous closing levels of Rs 1,580/1,708. Small sugar, however, edged higher by Rs 6/8 per quintal to Rs 1,548/1,585 previously.

DGFT said ban on sugar exports imposed in July 2006 would not apply to exporters which had procured advance licence before the restriction was clamped.

“The prohibition shall not apply to export of sugar by existing advance license holders as on July 4, 2006 as per their obligations on that date,” according to the notification issued on Wednesday evening.

The notification follows a Cabinet decision of December 18 permitting advance licence holders to export the sweetener.