Tag: sugar

domestic sugar production

India Imposes 50% Export Duty On Sugar-Derivative Molasses

By LokMarg

The central government has imposed a 50 per cent export duty on molasses, amid a possibility of a decline in domestic sugar production in the current season.

The proposed export duty shall come into force on January 18, 2024, an official notification from the Ministry of Finance said.

Molasses are a by-product of sugar which is utilised for ethanol production to promote a green economy.

Of the total ethanol produced in the country, ethanol from cane juice notably accounts for 25-30 per cent while that from B heavy molasses accounts for over 60-65 per cent. Ethanol from C-heavy molasses and grains accounts for the rest.

The Food Ministry in early December directed sugar mills not to use cane juice or syrup to produce ethanol.

The central government in mid-December, however, allowed the utilisation of juice as well as B-heavy molasses to produce the ethanol but capped the diversion of sugar at 17 lakh tonnes for the current marketing season.

India has already rolled out 20 per cent blended fuel, though, in a phased manner, in April 2023 and widespread availability is expected in days to come.

E20 blending in petrol was introduced by the Centre to reduce the country’s oil import cost, energy security, lower carbon emissions and for better air quality.

The government had advanced the target of E20 fuel from 2030 to 2025. (ANI)

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India Sugar Export

India Extends Sugar Export Restrictions Until Further Orders

By LokMarg

India has extended the restrictions on the export of sugar beyond October 31, 2023, and until further orders, according to a notification by the Directorate General of Foreign Trade issued on Wednesday.

The raw sugar, white sugar, refined sugar, and organic sugar are under export restrictions.

The restriction is, however, not applicable to sugar being exported to the EU and the US under the concession (CXL) and TRQ quota as was announced last year.

Initially, the restrictions were imposed starting June 1 to October 31, 2022, and later extended by a year till October 31, 2023. A tariff rate quota essentially is a quota for exports at relatively low duties. Once the limit is exhausted, a higher tariff applies to additional shipments.

The idea behind the sugar export restriction initially was to make prices of sugar stable domestically.

Earlier, in July, India prohibited the export of non-basmati white rice to check the domestic prices and ensure domestic food security.

While amending the export policy, DGFT maintained that the export will be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their government.

By that virtue, India has allowed the export of non-basmati white rice in varying quantities to Nepal, Cameroon, Cote d’Ivoire, Republic of Guinea, Malaysia, Philippines, Seychelles, UAE, and Singapore.

West African country Benin is one of the major importers of non-basmati rice from India. Other destination countries are UAE, Nepal, Bangladesh, China, Cote D’ Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon Somalia, Malaysia, and Liberia.

In late August, India also introduced additional safeguards by way of imposing a minimum floor price on exports of basmati rice so as to prevent exports of non-basmati white rice, which was already under the prohibited category since July.

Last week, the central government extended the 20 per cent export duty on parboiled rice till March 31, 2024, an official notification said. Rice which is partially boiled with husk is called parboiled rice.

Initially, the duty was introduced on August 25, 2023, and was due to remain effective till October 16, 2023, aimed at maintaining adequate domestic availability and checking its price.

India in September 2022 banned the exports of broken rice and imposed a 20 per cent duty on exports of non-Basmati rice, except for parboiled rice amid concerns about low production due to a fall in area under the paddy crop. It later lifted the ban in November. (ANI)

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