The Centre will soon announce a new sugar export policy for the 2022-23 season (October-September), Food Secretary Sudhanshu Pandey said on Monday. The sugar industry has sought a free policy within an overall quantitative limit until March and a review of it later.
“We will soon announce the sugar export policy for next season,” Pandey told reporters on the sidelines of the annual general meeting of the Delhi-based Roller Flour Millers Federation of India (RFMFI).
In May, the government capped sugar exports and permitted them only through permits until October 31. The cap was fixed at 10 million tonnes (mt) for the 2021-22 season. However, it later allowed an additional 1.2 mt, out of which nearly 1 mt has already been released while 0.2 mt has been reserved for diplomatic requests.
Logistics challenges
While 10 mt cap got exhausted a month after the announcement of restriction, the subsequent release of quota was to be shipped within a deadline from the date of issue of the permit and there was a delay in adhering to the target. Due to the slow down in shipments mainly caused by logistics issues on heavy rainfall in several parts, millers had sought an extension of deadline. The Centre on September 9 allowed all exporters to complete the shipments by October 31.
India’s sugar exports were 7 mt in 2020-21 season, 5.9 mt in 2019-20 and 3.8 mt in 2018-19.
Since June, Indian Sugar Mills Association (ISMA) has been seeking an advance decision on the next export policy so that mills can contract and plan their production. Given the surplus production, it had suggested that 8 mt of sugar may be allowed for export under either open general license policy or the Maximum Admissible Export Quota (MAEQ) system implemented in 2020-21.
ISMA president Aditya Jhunjhunwala has said sugar output the next season is estimated at 35.5 mt (excluding 4.5 mt to be diverted for ethanol) against 27.5 mt of consumption, leaving out a surplus of 8 mt. He, however, said sugar production will be higher next year due to higher area under sugarcane.
Under MAEQ, which was transferable, the government had fixed the quota on expected sugar to be exported against per tonne cane crushed by each mill. The cane acreage is higher by 1.2 per cent at 55.65 lakh hectares (lh) as of September 16 from 54.97 lh year-ago, official data show.