Government Partially Lifts Sugar Export Ban, approves 1 Million Tonnes export

Government Partially Lifts Sugar Export Ban, approves 1 Million Tonnes export

Sub : Eco

Sec : External sector

Why in News?

• The Union Government has partially lifted the ban on sugar exports, allowing 1 million tonnes of sugar to be exported for the 2024-25 season, which ends in September 2025. This decision is aimed at maintaining domestic price stability, improving farmer payments, and boosting liquidity for sugar mills.

Context:

• The sugar export ban, imposed in October 2023, was a measure to control domestic prices amidst supply concerns. The partial relaxation now seeks to balance surplus stocks with domestic demand while ensuring timely farmer payments and price stability.

Objectives of the Move

• Price Stability:
  • Regulate domestic sugar prices by managing surplus stocks.
• Support to Farmers:
  • Ensures timely payments to 5 crore farmer families.
• Worker Benefits:
  • Positively impacts 5 lakh workers in the sugar industry.
• Sectoral Strengthening:
  • Enhances the financial liquidity of sugar mills.
• Global Market Opportunities:
  • Indian sugar exports play a crucial role in stabilizing global sugar markets.

Reactions from the Government and Industry

• Government’s View:
  • Union Food Minister emphasized that this decision would benefit both farmers and workers and stabilize the sector.
• Industry Response:
  • The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) welcomed the move, highlighting its role in addressing surplus sugar stocks and improving financial liquidity for mills.