The government will soon announce the export quota of sugar for next marketing year starting October, Food Secretary Sudhanshu Pandey said on Monday. He however did not disclose the quantity of sugar that will be allowed for export in the 2022-23 marketing year.
“We will soon announce the sugar export policy for next season,” Pandey told reporters here on the sidelines of the 82th AGM of Roller Flour Millers Federation of India (RFMFI). In May, the government had allowed exports of 100 lakh tonnes of sugar but later allowed another 1.2 million tonnes. This took the total export quota for the 2021-22 marketing year to 11.2 million tonnes.
“We would like to request the government to allow 8 million tonnes of exports for 2022-23 SS (Sugar Season),” the ISMA president had said in the letter. As per a preliminary estimate, Jhunjhunwala said the net sugar production, without considering the diversion of sugar for the production of ethanol, is expected to increase to about 40 million tonnes in 2022-23 from 39.4 million tonnes in the current marketing year. However, he said 4.5 million tonnes of sugar are expected to get diverted for ethanol in 2022-23 as against 3.4 million tonnes in the current marketing year. This means that actual sugar production in 2022-23 would be 35.5 million tonnes, the ISMA president said.
“Therefore, after considering domestic sugar consumption of 27.5 million tonnes in the next season (2022-23), it becomes imperative to export at least 8 million tonnes of surplus sugar out of the country in order to maintain optimum sugar balance in the country,” Jhunjhunwala said. Exports of surplus sugar would also help in maintaining domestic sugar prices, which in turn will boost the liquidity position of mills, enabling them to pay sugarcane farmers on time.
The ISMA president mentioned that the sugarcane crushing operations in 2022-23 is expected to start from October first week itself because of huge cane availability. Jhunjhunwala urged the government to announce the export policy for 2022-23 at the earliest so that mills can enter into future contracts and also plan their production in advance.
Source: financial express
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