The Centre maintained on Wednesday that the festival season starting from October and the commitment to stabilise prices in the domestic market were the reasons for restricting sugar exports beyond 10 million tonnes (100 lakh metric tonnes).
The farmers, however, were suspicious of the decision and said the Centre was closing all avenues for better prices for what they produce.
Talking to reporters, Department of Food and Public Distribution Secretary Sudhanshu Pandey said the Centre’s first priority was to ensure sufficient availability of sugar for consumption at a reasonable rate, and thereafter divert more sugar into ethanol production. “During the festival period of October and November, the demand for sugar increases and therefore, the Centre is committed to ensure availability of sugar for the lean period,” Mr. Pandey said.
The Directorate General of Foreign Trade (DGFT) had issued an order on Tuesday stating that the export of sugar would be allowed with specific permission from the Directorate of Sugar, Department of Food and Public Distribution between June 1 and October 31, or till further order, whichever is earlier. Mr. Pandey said the Department would release Export Release Orders (EROs) on receiving applications from sugar mills and exporters. “Sugar mills will apply for ERO for dispatch of sugar from mills for export. Exporters will apply for export of sugar out of country. Both need to apply online through National Single Window System (NSWS),” he added.
He said the Centre was committed to stabilising the price of sugar in the domestic market and in past 12 months, the price had been under control. “Wholesale prices of sugar in India are range bound between ₹3,150-₹3,500 per quintal while retail prices are also within control in the range of ₹36- ₹44 in different parts of the country. Global situation reflects a shortage of sugar, especially due to lower production in Brazil. This may trigger the demand globally and so as to safeguard domestic availability and interests, DGFT issued an order to maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September),” he said.
The move has irked farmers’ groups. “The direct impact of this decision is not on sugar price but on the farmers. The traders will take it as a pretext to reduce the cost they pay to farmers. The government recently announced such decisions on wheat, sugar and onion. The message is clear that the Centre will not reduce prices of petrol or diesel to control inflation, but farmers will have to shoulder the burden of inflation. These decisions also expose the stand taken by pro-neoliberal groups that this government brought three farm laws to encourage exports. But it has now been proved that this government is taking pro-corporate stand, not pro-farmer stand,” Ajit Nawale, general secretary of the Maharashtra unit of the All India Kisan Sabha, said.
He said there was excess sugar cane production in Maharashtra and the sugar mills were struggling to complete crushing. “Farmers are yet to complete harvest. Both sugar mills and farmers will be in trouble because of the restrictions on sugar export,” Mr. Nawale said.
Jitender Singh Hudda, a farmers’ leader from Shamli in Western Uttar Pradesh, said farmers got a better price for sugar cane after several years due to exports. “We were told that there is enough sugar stock in the country. The next crushing season would have started in October after four months. This government is closing all opportunities for farmers. We would have got access to more markets and better prices because of the international situation. The sugar production is regularly surplus. They should have looked at the cultivate area before imposing restrictions. Monsoon reports were also normal. The quota release system is already there for sugar mills. So domestic markets wouldn’t have impacted at all,” Mr. Hudda said.
