BANKING AND ECONOMY
The Union government placed restrictions on sugar exports during the period from June 1 to October 31 or till further order. The government has told traders to secure permission for the overseas sales of sugar. This is for the first time in six years that India has imposed restrictions on sugar exports.
Earlier, the export of the sugar will be allowed with specific permission from the Directorate of Sugar, Department of Food and Public Distribution.
The restriction was imposed with the aim to prevent a surge in local prices. The order was issued by the Directorate General of Foreign Trade (DGFT). The move primarily seeks to improve the availability of sweeteners in the domestic market and check price rises.
With this restriction, ‘Export of sugar’ (raw, refined, and white sugar) is placed under a restricted category from June 1st of this year. This move has the potential to impact prices worldwide.
India's restriction is similar to steps introduced by many other governments in the wake of the Ukraine war that has led to food prices rising sharply in many parts. Some of the countries and the restrictions were;