Central

Section 4 of The Sugar Export Promotion Act, 1958

(1)The Central Government may, by notification in the Official Gazette, fix from time to time the quantity of sugar which may be exported during any period, and, in fixing such quantity, the Central Government shall have regard to—
1. (a)the quantity of sugar available in India,
2. (b)the quantity of sugar which, in its opinion, would be reasonably required for consumption in India,
3. (c)the necessity for exporting sugar with a view to earning foreign exchange in the public interest.
(2)The power conferred by sub-section (1) shall be so exercised as to ensure that the quantity fixed under that sub-section for any year does not exceed in the aggregate twenty per cent, of the quantity of sugar produced in India in the season ending with the month of October falling within that year

Summary

The Central Government decides how much sugar can be exported during a specific period and publishes this amount in the Official Gazette.
In deciding this quantity, the Central Government must look at how much sugar is currently available in India.
The government must also consider how much sugar is reasonably needed for people to consume inside India.
The government must evaluate the need to export sugar to earn foreign currency in the public interest.
The total amount of sugar fixed for export in any year must not exceed twenty percent of the total sugar produced in India during the season ending in October of that year.

Practical examples

1In June 1959, the Central Government reviews India's sugar supply. They find that India has produced 2,000,000 tons of sugar in the season ending October 1959. Under Section 4, the government cannot fix an export quantity higher than 400000 tons, which is exactly twenty percent of the production, and publishes the final export amount in the Official Gazette.

2In September 1961, there is a shortage of sugar in local Indian markets. The Central Government, considering the local food requirements, decides to keep the export quota very low, only five percent of total production, to make sure there is enough sugar left for domestic consumption.

FAQ

1. What factors must the Central Government consider when fixing the export quantity?

The government must look at the sugar available in India, the sugar needed for domestic consumption, and the public interest in earning foreign exchange.

2. Is there a legal limit on how much sugar can be designated for export in a year?

Yes, the total quantity fixed for export in a year cannot exceed twenty percent of the sugar produced in India in the season ending in October of that year.

3. How does the Central Government officially declare the quantity of sugar to be exported?

The Central Government declares the quantity by publishing a notification in the Official Gazette.

Test yourself

Q1.What is the maximum percentage of sugar produced in India in a season ending in October that can be fixed for export in that year?

Q2.Which month marks the end of the sugar production season used to calculate the export limit?

Q3.What key economic goal must the government consider when deciding to export sugar?

Q4.Which of the following is NOT a factor the government must consider under Section 4(1)?

Q5.How must the Central Government publish the fixed quantity of sugar for export?

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