India has extended curbs on sugar exports by one year until October 2023, the government said, but the world’s biggest producer of the sweetener is still expected to fix a quota for this year’s overseas sales.

India, which is the world’s biggest sugar consumer, restricted exports till the end of this month to contain the surge in domestic prices as a result of record exports earlier this year.

While the Directorate General of Foreign Trade (DGFT) in an order of October 28 extended the ban on sugar exports for one more year, another order issued by the Department of Food and Public Distribution (DFPD) on the same date has extended the deadline for implementing the export release orders (ERO) of sugar issued for the 2021-22 season for another month till November 30, 2022.

An ERO is a kind of permit that mills are issued to export sugar based on certain parameters and criteria.

“Restriction on export of sugar (raw, refined, and white sugar) is extended beyond October 31 till October 31, 2023, or until further orders, whichever is earlier. Other conditions will remain unchanged,” the Directorate General of Foreign Trade (DGFT) said in a notification dated October 28.

Industry sources said the extension of the restriction notification is a clear indication that the shipment in 2022- 23 would be based on quotas issued to mills rather than under open general licence.

The Centre is expected to allow only 8 million tonnes of sugar in two tranches. In the first tranche, about 5 to 6 million tonnes will be allowed, which will be followed by another installment of 2-3 million tonnes, if the market condition remains favourable and there is adequate domestic stock.

India exported a record 11.2 million tonnes (mt) of sugar in the 2021-22 season, which ended on September 30, resulting in domestic stocks declining to their lowest for the second time in a decade. Closing stocks are estimated to have dropped to 6.5 mt as on September 30.