Sugar export banned till March next

In a move to check the rising commodities prices, the government has imposed a ban on the export of sugar till March 31. The ban does not apply to preferential quota sugar exports to the European Union (EU) and America.

However, exports to these two would take place through the Indian Sugar Exim Corporation (ISEC), subject to quantitative ceiling notified by the Directorate General of Foreign Trade (DGFT) from time to time. The companies that had got their export contracts prior to June 22 can complete their shipments.

Simbhaoli Sugar Chief Financial Office Sanjay Tapriya said, "Frequent changes in the export-import policies would erode India's credibility internationally. The government should try and put in place a consistent long-term policy."

Dhampur Sugar Chief Financial Officer Arhant Jain said, "The move is not welcome despite the fact that sugar exports from India are limited. Exports, whether big or small have a stabilising effect on domestic prices."

The ban would push down domestic prices but at the same time it would fuel international sugar prices, said an analyst with Kotak CSL Research. The prices of sugar have been ruling high internationally after the European Union suspended its exports.