The centre’s decision to limit the export of sugar may not impact Maharashtra’s sugar economy much even as the state has registered record production this year and sugar mills are still working to crush the remaining sugarcane, experts said. According to the Maharashtra sugar commissionerate, the state has so far produced 146 lakh million tonne (LMT) of sugar, which is an all-time high and 25% higher than the previous year. This has made Maharashtra the largest sugar producer, ahead of Uttar Pradesh (UP).

Those from the sugar trade said that the centre’s decision to regulate the export of sugar will not affect much the sugar industry and farmers but will offer relief from inflation to consumers. If the decision to cap the export of sugar would not have been taken, the domestic price of sugar would have shot up. The central government has decided to allow the export of sugar up to 100 MLT with a view to maintain domestic availability and price stability of sugar.

Prakash Naiknavare, managing director of the National Cooperative Federation of Sugar Mills, said, “The decision taken by the centre was expected. Earlier in 2016, the government took such steps. If the government would not have taken the decision to regularise sugar export, sugar prices would have definitely increased in the domestic market which in turn would have increased inflation.”