Govt partially relaxes ban on sugar exports

NEW DELHI: The Government has partially relaxed the ban on sugar exports, permitting companies to sell the commodity overseas with prior government approval.

The nature of restriction on sugar exports has been changed from "not permitted" earlier to "unless specifically permitted for export by DGFT," according to a notification by the Directorate General of Foreign Trade.

The government had banned sugar exports last month till the end of this financial year, as part of measures to check rising prices of essential commodities.

However, the government decision had affected those mills which had imported raw sugar in 2004-05 and had to meet their re-export obligation this fiscal.

The DGFT notification follows a government clarification last week, allowing for exports sugar stocks taken out of mills before June 22, 2006 and the stocks already in transit.

Sugar production has been estimated at 130 lakh tones for 2004-05, the year when mills were allowed to import raw sugar with re-export obligation under Open General License.

Sugar year in India runs from October to September.

The ban would, however, not be applicable on preferential quota sugar exports to the US and European Union.

Sugar exports to the US and EU are permitted only through Indian Sugar Exim Corporation Ltd up to a quantitative ceiling notified by the DGFT.