Recently, the Union Government partially lifted the sugar export ban, allowing the export of one million metric tonnes of sugar for the 2024-25 season ending in September 2025.

Earlier Ban on Sugar Export

• The export ban was imposed in October 2023 to regulate domestic sugar prices amid concerns of inflation and potential shortages.
  • The ban was an extension of restrictions imposed on sugar export in 2022.
• This marked the first regulation on sugar exports in six years, driven by an unprecedented growth in exports during the previous season.

Expected Impact of the Move

• Boosts India’s agricultural economy by enhancing revenue generation.
• Directly benefits 5 crore sugarcane farmer families and 5 lakh workers by ensuring timely payments.
• It allows mills to export all grades of sugar.
• Balance sugar availability in domestic and international markets

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Global Sugar Scenario

• Production
  • Top producers (2022): Brazil, India, EU-27, China, USA, Thailand, Russia, Mexico, Pakistan, and Australia.
  • Sugarcane accounts for 80% of global sugar production; sugar beet is the remainder.
  • World production reached a record 178.93 million tonnes in 2022.
• Consumption
  • Global consumption rose to 176.318 million tonnes in 2022.
  • Major consumers: India, EU-27, China, USA, Brazil, Indonesia, Russia, Pakistan, Mexico, and Egypt.
  • Key drivers: Population growth, incomes, prices of sugar and sweeteners, and health debates.
• Trade
  • Top exporters: Brazil, India, and Thailand.
  • International sugar trade hit a record 69.822 million tonnes in 2022, with India and Thailand driving growth.

India’s Position in 2024

• Exports: India exported 82 lakh metric tonnes in the 2021-22 season, achieving a historic high. Current allocation of 10 lakh tonnes ensures sustained market presence.
• Global Trade Share: India’s export relaxation supports international demand, especially benefiting sugar-deficient nations.