The government today restricted export duty exemption on overseas shipment of organic sugar to 2,500 tonnes for the 2015-16 marketing year ending September.
The government had imposed an export duty of 20 per cent on sugar last month.
The government had extended exemption from export duty on 10,000 tonnes of organic sugar in March 2011.
"The exemption for the period ending with September 30, 2016 shall be restricted to 2,500 tonnes," the CBEC said in a notification.
The exports were allowed with certain conditions. The exporter has to produce a registration-cum-allocation certificate issued by the Agricultural and Processed Food Products Export Development Authority (APEDA) certifying the quantity of export of organic sugar eligible to be exported by claiming exemption from export duty.
The country's sugar production is estimated to decline to 25 million tonnes in 2015-16, as against 28.3 million tonnes last year. The annual domestic demand is pegged at 26 million tonnes.
Moreover, the government has forecast further decline in output next year at 23-24 million tonnes.
However, it has maintained that there would be no shortage as the country would have the opening stock of 7 million tonnes at the start of the next marketing year, taking total availability to 30-31 million tonnes.
