The Central Board of Indirect Taxes and Customs (CBIC) has recently released instructions regarding reallocation and holding of export quotas of sugar mills.
A restriction imposed by a government on the amount or number of goods or services that may be exported within a given period is usually done with the intent of keeping prices of those goods or services low for domestic users.
By a letter dated 23.01.2023, the Department of Food & Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution has informed about cancellation of the following sugar mills till further orders in reference to its 8th & 9th Reallocation of Export Quota for export during Sugar Season 2022-23 and holding of export quota earlier allowed as under:-
Plant Code 35401 – Bijapur Sugar Plant – 14404 Metric Tonnes Quota
Plant Code 52901 – Havargaon Sugar Plant – 4696 Metric Tonnes Quota and
Plant Code 35401 – Havaragaon – 4696 Metric Tonnes Quota
Plant Code 35501 – Sant Dhamaji Sugar Plant – 5497 Metric Tonnes Quota
Accordingly, DFPD has advised to put on hold export quotas of above-mentioned sugar mills and to not allow export of sugar from the above-mentioned 3 sugar mills till further orders.
The export quotas of the said sugar mills were consequently put on hold, not allowing the same to export sugar.
India limited sugar mills to exporting 6.1 million tons in the current season, with 5.7 million tons already contracted. Sugar mills in India’s top producing state, Maharashtra, will halt cane crushing 45-60 days earlier than last year due to reduced sugar cane availability caused by heavy rain. Being the second biggest exporters, the Indian sugar exports are crucial to the global market. The instruction also requested that necessary action may be taken to sensitize officers under your jurisdiction for compliance of the above order of DFPD.
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