The government gave relief: Ban on sugar export to curb inflation, tax exemption on import of edible oil

Posted on 25th May 2022 by rohit kumar

Continuous efforts are being made to control the rising inflation. In this episode, the government has now banned the export of sugar like wheat. Apart from this, once again the excise duty on petrol and diesel can be cut.

 

Ban on export of sugar from June 1

 

The government on Tuesday banned the export of sugar from June 1, intending to increase its availability in the domestic market and check price rise. The Ministry of Consumer Affairs said that "To maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), the central government will regulate sugar exports with effect from June 1, 2022, till further orders." Will allow sugar export up to 100 LMT (Lakh Metric Tonne)."

 

"The export of sugar (raw, refined, and white sugar) has been kept in the restricted category with effect from June 1, 2022," the Directorate General of Foreign Trade (DGFT) said in a notification.

 

However, it said that these restrictions will not apply to sugar being exported to the European Union and the US under CXL and TRQ. A certain amount of sugar is exported to these regions under CXL and TRQ. In a statement, the government said that to maintain domestic availability and price stability of sugar in the country during the sugar season 2021-22 (October-September), it has decided to regulate sugar exports from June 1.

 

"The government has decided to allow export of sugar up to 100 LMT (Lakh MT) during the sugar season 2021-22 (October-September) to maintain domestic availability and price stability," it said.

 

It said, "As per the order issued by DGFT, export of sugar is permitted from June 1, 2022, to October 31, 2022, or till further orders, whichever is earlier, with specific permission of Directorate of Sugar, Department of Food and Public Distribution. Will be supported.

 

Explain that India is the largest sugar-producing country in the world. Second in terms of exports. Brazil is the largest exporter of sugar. Sugar industry body ISMA says that a record 9 million tonnes of sugar can be exported in the current marketing season. So far 70 lakh tonnes have been exported and a total agreement has been signed for 83 lakh tonnes. Last year 72 lakh tonnes were exported. Earlier on May 16, the government had imposed a ban on wheat exports.

 

The government Tuesday exempted imports of 2 million metric tonnes of crude soybean and sunflower oil from customs duty and agricultural infrastructure development cess on Tuesday to reduce domestic oil prices. The Finance Ministry said in a notification that duty-free import of 20 lakh metric tonnes per annum for crude soybean oil and crude sunflower oil would be applicable for two financial years (2022-23, 2023-24). The relaxation will help in reducing domestic prices and controlling inflation. CBIC tweeted, that this will bring great relief to the consumers.

 

The government had cut excise duty on petrol and diesel

 

Last week, to control rising oil prices, the government cut excise duty on petrol and diesel and waived off import duty on some raw materials used in the steel and plastics industry. In addition, export duty on iron ore and iron pellets was increased.

 

The rise in prices of all commodities from fuel to vegetables and cooking oil pushed wholesale price inflation to a record high of 15.08 percent in April and retail inflation to an eight-year high of 7.79 percent. High inflation forced the Reserve Bank to hold an emergency meeting earlier this month to raise the benchmark interest rate by 40 basis points to 4.40 percent.

 

Government wheat procurement was down 53 percent to 182 lakh tonnes in 2022-23

 

The government's wheat procurement in the marketing year 2022-23 has so far declined by 53 percent to 182 lakh tonnes as compared to the previous financial year. The main reason for this is the aggressive procurement of wheat by private traders for export. Government sources gave this information. The Rabi marketing year runs from April to March but most of the procurement ends by June. In the last marketing year, the highest ever 433.44 lakh tonnes of wheat was procured.

 

The state-owned Food Corporation of India (FCI) and state procurement agencies procure this food grain at a Minimum Support Price (MSP) to meet the requirement under the Public Distribution System (PDS) and other welfare schemes. Due to a fall in wheat production and an increase in exports, the wheat procurement target for the current year has been revised to 1.95 lakh tonnes from 4.44 million tonnes earlier. According to government sources, procurement of wheat by government agencies remained low in all the major producing states of Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh.

 

The government's wheat procurement declined to 96 lakh tonnes in the marketing year 2022-23, from 132 lakh tonnes a year ago. Similarly, wheat procurement in Haryana declined to 40 lakh tonnes from 84 lakh tonnes, while in Madhya Pradesh procurement during the same period declined to 42 lakh tonnes from 118 lakh tonnes earlier. Wheat procurement in Uttar Pradesh declined sharply to 2.64 lakh tonnes in the marketing year 2022-23 from 33 lakh tonnes in the year-ago period. Sources said that in case of Rajasthan, procurement was only 1,010 tonnes as against 1.6 million tonnes in the same period. Sources attributed the sharp fall in government procurement to aggressive buying by private companies for exports. The government had banned the export of wheat on May 13 to control the prices.

 

Also Read: Edible Oil: Edible oil prices may fall amid rising inflation, this move of the government raised hopes