Govt to discuss total lifting of sugar exports ban. F.E., Jan. 07

Back

The Cabinet Committee on Prices (CCP) in its next meeting, is slated to deliberate on the issue of totally lifting the ban on sugar exports. The government had imposed a ban on sugar exports on July 4 last year, in response to rising prices in the domestic market caused due to hoarding and manipulations in the futures market.

The ban was lifited partially on December 18, 2006, allowing exports only to those mills, which had export obligations against imports of raw sugar under a specific scheme of the government. The sugar industry had been lobbying with the government for totally lifting the export ban.

Recently, the ministry for food and consumer affairs, on January 4 moved a note to the CCP for the total lifting of the export ban. The ministry, in its note, has suggested that lifting of sugar exports under the open general licence (OGL) scheme, subject to the ministry's periodic release orders. It has argued that the supar prices in the domestic market has softened to Rs 19 per kg hence, here is no such concern on the price front.

  • The government imposed a ban on sugar exports on July four last year.
  • It was lifted partially on December 18, 2006 for select mills
  • The sugar industry had been lobbying to squash the ban.