Union government extends restriction on exports of sugar under OGL
The central government has extended restriction on exports of sugar under OGL (open general licence) for one more year to 31st October 2023
Sugar export restriction under open general license would lead to quota based sugar exports where each sugar mills would get proportionate export quota on the basis of their production. We believe government would initially allow 6 million tonnes of export in 2022-23, which would further extent by 2-3 MT aiming to keep sugar inventory levels at 5-6 million tonnes by September 2023. It is important to note that global refined sugar prices are trading at Rs38-40 / kg (in INR), which is higher than domestic sugar prices of Rs36/kg. Indian millers have already contracted for ~3 million tonnes of exports for 2022-23 sugar season
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