New Delhi: The nationwide lockdown due to coronavirus has affected the sugar industry by hitting domestic sugar sales and added financial strains to sugar millers, sugar exports have also been stranded with most of the ports in India having invoked force majeure.
In a notification issued on 1st day of May 2020, the Department of Food and Public Distribution extended the timeline for export of Maximum Admissible Export Quota (MAEQ) of 60 LMT for those sugar mills which have not contracted at least 50% of their original MAEQ and have not lifted at least 25% of their original MAEQ for export till 31.03.2020 are allowed to fulfill their quarterly export target by 30.06.2020. The Government reallocated the MAEQ to sugar mills on the basis of surrendered quantity and allocated additional quantity to mills eligible for exports of sugar.
The Department of Food & Public Distribution also notified that the sugar mills which have not surrendered their MAEQ partly or fully may voluntarily cease to keep the quantity which could not be exported by 30.06.2020. In case any sugar millers fail to do so then they would not be entitled for their claim for 3rd and 4th quarter under the scheme for creation and maintenance of buffer stock of sugar of 40 LMT notified on 31.07.2019.
Click here to view the Notification Guidelines on review of MAEQ / Extension for deadline for exports for season 2019-2020