India’s restriction of sugar exports supports E20 goals

By Erin Voegele | June 09, 2022

The government of India in late May took action to restrict sugar exports in an effort to deep domestic prices in check and ensure sufficient supplies of sugar for domestic consumption and for use in the government’s ethanol blending program.

The government took this action on May 24 via a notification issued by India’s Ministry of Commerce and Industry/Directorate General of Foreign Trade, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.

According to the GAIN report, the notification specifies that exports of raw, refined and white sugar fall under the “restricted” category. Starting June 1, exports of these products will require special permission from India’s Ministry of Consumer Affairs, Food and Public Distribution/Department of Food and Public Distribution/Directorate of Sugar. The restriction is not applicable to sugar exports destined to the U.S. and European Union falling under CXL and tariff-rate quotas.

India in mid-2021 set a goal to achieve 20 percent ethanol blending by 2025, five years sooner than the country’s previous goal to achieve an E20 blend by 2030. A report filed with the USDA FAS GAIN in February 2022 provided an update of the country’s goal to install or upgrade nearly 200 grain-based ethanol production facilities in support of the country's move to E20. In May, the government announced amendments to its National Policy on Biofuels that aim to accelerate the adoption of E20, allow the use of new biofuel feedstocks, and grant permission for biofuel exports under certain conditions.