Introduction: The Ministry of Commerce & Industry, Government of India, has issued a crucial notification (No. 36/2023-DGFT) dated October 18, 2023, extending the restriction on the export of sugar beyond the previously set date of October 31, 2023. This decision is in exercise of the powers conferred by Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992.
Extension of Export Restriction: In partial modification of Notification No. 40/2015-2020 dated October 28, 2022, the Central Government has decided to extend the date of ‘restriction’ on the export of sugar. This extension applies to various types of sugar, including Raw Sugar, White Sugar, Refined Sugar, and Organic Sugar, classified under specific HS codes (HS Codes 1701 14 90 and 17019990).
Exception for EU and USA: The notification clarifies that the extended restriction does not apply to sugar being exported to the European Union (EU) and the United States of America (USA) under specific quotas such as the CXL (Country-specific Quota) and TRQ (Tariff Rate Quota). Export procedures under these quotas must adhere to the prescribed guidelines.
Impact and Implications: The decision to extend the restriction on sugar exports is a significant development in India’s sugar industry. It reflects the government’s efforts to maintain a balance between domestic supply and international commitments. This decision is influenced by factors such as domestic demand, supply dynamics, and international trade agreements.
Extending the restriction is expected to ensure an adequate supply of sugar in the domestic market, thereby addressing any concerns related to food security and availability. It also aligns with India’s commitments to international trade agreements, ensuring that the export of sugar remains within the defined quotas for specific countries.
Conclusion: The extension of the export restriction on various types of sugar by the Government of India is a proactive measure aimed at managing the sugar market effectively. By extending the restriction beyond October 31, 2023, the government demonstrates its commitment to striking a balance between domestic consumption and international trade agreements.
This decision is likely to benefit various stakeholders in the Indian sugar industry, ensuring that the interests of domestic consumers are protected while upholding India’s commitments to its trading partners. As the global trade landscape continues to evolve, such measures become crucial in maintaining a harmonious balance between domestic needs and international obligations.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 36/2023-DGFT | Dated: 18th October, 2023
Subject: – Extension of date for restriction on export of sugar beyond 31st October, 2023.
S.O. 4568(E).— The Central Government, in exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, in partial modification of Notification No.40/2015-2020 dated 28th October. 2022, hereby extends the date of ‘Restriction’ on export of Sugar (Raw Sugar, White Sugar, Refined Sugar and Organic sugar) under HS Codes 1701 14 90 and 17019990 beyond 31st October, 2023 till further orders.
2. This restriction is not applicable to Sugar being exported to EU and USA under CXL and TRQ quota as per prescribed procedure in the respective Public
3. Effect of this Notification:
Restriction on export of Sugar (Raw Sugar, White Sugar, Refined Sugar and Organic sugar) is extended beyond 31.10.2023 till further. Other conditions will remain unchanged.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-Officio Additional Secretary, Govt. of India
E-mail: dgft@nic.in
(Issued from File No. 01/91/180/879/AM08/EC/Vol.8/E-20749)
