Govt. lifts ban partially, gives nod for export of million tonnes of sugar
(Source – The Hindu, International Edition – Page No. – 4)
| Topic: GS3 – Indian Economy, GS3 – Agriculture |
| Context |
| ● The Union government partially lifted the sugar export ban, allowing the export of one million tonnes in the 2024-25 season.
● This move aims to ensure price stability, benefit farmers and workers, and boost liquidity for sugar mills by addressing surplus stocks. |
Potential Benefits:
- Price Stability: The decision aims to stabilize domestic sugar prices by allowing controlled exports, preventing prices from plummeting due to surplus stocks.
- Support for Farmers: By enabling exports, sugar mills will have better liquidity, ensuring timely payments to the five crore farmer families involved in sugarcane production.
- Boost to Sugar Mills: The export allowance helps sugar mills by clearing surplus stock, improving cash flow, and enhancing their financial position.
- Employment Boost: The move is expected to benefit approximately five lakh workers in the sugar industry, contributing to job security.
- Enhances India’s Sugar Sector: This decision strengthens the sugar sector by improving overall market stability and ensuring its growth potential.
Challenges:
- Risk of Domestic Shortages: Exporting sugar could potentially create a shortage in the domestic market if not monitored carefully, which may lead to price hikes.
- International Market Dynamics: The global sugar market’s volatility could affect the benefits of export, especially if demand fluctuates or international prices fall.
- Logistical and Regulatory Hurdles: Coordinating exports through traders and ensuring compliance with export quotas can create operational challenges.
Conclusion:
- The move to allow sugar exports is a balanced approach to support the sugar industry, farmers, and workers – but requires careful monitoring to avoid negative consequences on domestic availability and prices.
| Practice Question: Examine the potential benefits and challenges of the Union government’s decision to lift the ban on sugar exports partially. How might this move impact India’s sugar industry and farmers? (150 Words /10 marks) |
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