Sugar industry confident of Centre allowing more export quota 

The sugar industry is confident that the government will allow export of additional 30 lakh tonnes (lt) as this would ensure steady domestic prices, enabling timely cane payments to farmers and lower inventory levels ensuring there are no additional costs incurred by mills, said Sonjoy Mohanty, Director-General, Indian Sugar Mills Association (ISMA). 

Based on the initial estimates of sugarcane production, the Centre has allowed 60 lt of sugar exports during 2022-23. The shipments will have to be done by May 31. 

“The sugar industry is appreciative of the government’s decision to allow sugar export of 60 lt, under the quota scheme. ISMA has been requesting the government to allow sugar export in the 2022-23 Sugar Season (SS) under the tradable quota scheme, which was accepted by the government. The sugar industry is grateful to the government for the same. This will ensure transparency in sugar exports” said  Mohanty in a statement. 

He said the fact that the government has allowed sugar mills to exchange their export quota with the domestic quota of any other mills within 60 days from the date of issuance of the order, will ensure liquidation of the surplus stock, and mills can generate revenue thereby ensuring timely cane payment to farmers. 

In the ISMA’s press statement issued on October 17, the industry body had requested the government to allow export of 90 lt, considering the expected total sugar stocks availability in the country. 

The Centre has prioritised the availability of about 275 lt sugar for domestic consumption, about 50 lt for diversion to ethanol production and would be left with a balance of about 60 lt as on September 30, 2023.

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