Sugar industry body ISMA has urged the government to allow 20 lakh tonnes of sugar exports in the current marketing year ending September as shipments of surplus sweetener would boost liquidity of millers enabling them to make cane payments to farmers on time.

For the current 2023-24 marketing year (October- September), the government has not allowed sugar exports to boost domestic supply and control retail prices. In the preceding marketing year, sugar mills were allowed to export around 60 lt of sugar.

In a statement on Monday, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said that the production has reached about 314 lt as of the end of April 2024. With additional output of 5-6 lakh tonnes expected from mills in Karnataka and Tamil Nadu, the final net sugar production is estimated to be close to 320 lt in 2023-24 marketing year (October-September).

The net sugar production stood at 328.2 lt during the 2022-23 marketing year with a diversion of 38 lt of sweetener for ethanol-making from sugarcane juice and B-heavy molasses. “Taking into account an opening stock of approximately 56 lt as of October 1, 2023, and a forecasted domestic consumption of 285 lt for the season, ISMA projects a significantly higher closing stock of 91 lt by September 30, 2024. “This estimate, amounting to 36 lt above the normative stock of 55 lt, can potentially lead to additional costs for the millers on account of idle inventory and carrying costs,” ISMA said while making a case for allowing exports.

The association also expects a moderate crushing season in 2024-25 due to several factors, including the early announcement of an increased Fair and Remunerative Price (FRP) for sugarcane, favourable pre-monsoon rainfall and forecasts indicating an above-normal monsoon. These factors are further expected to lead to a higher stock in the coming year.

In light of these projections, ISMA “urged the government to consider permitting the export of 20 lakh tonnes of sugar in the current season.

This would not only ensure sufficient stocks for domestic consumption and the Ethanol Blending Program (EBP) but also improve the financial liquidity of sugar mills and enable timely payments to farmers, it added.

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