Government allows sugar exports against raw sugar imports
By Our Corporate Bureau | 04 Jan 2007
Mumbai: The government has lifted the total ban on sugar exports and allowed re-export of white sugar against import of raw sugar.
A notification by the director general of foreign trade (DGFT) said it would allow exports against advance licences that stipulates re-export of white sugar against import of raw sugar.
DGFT said the ban on sugar exports imposed in July 2006 would not apply to exporters who had procured advance licence before the restriction was imposed.
This would allow advance licence holders who could not meet export obligations before July 4, 2006 to export sugar as the government then banned exports to augment domestic availability.
The notification follows a cabinet decision of December 18 permitting advance licence holders to export sugar.
Sugar firms, according to industry estimates, had a re-export obligation of about one million tonnes out of a total 2.3 million tonnes raw sugar imported under the advance licence scheme when the ban was imposed.
The industry had complained about the delay in issuing the notification as international prices have fallen in recent times.
Government reviewed sugar export policy following an easing of domestic prices amidst adequate supply, ending days of anxiety for the sugar industry. The industry had feared that any delay could harm their prospects in view of the fall in global prices.