Whether to give export exemption in an open category or not will be decided in the new season. The new season of sugar in the country is starting in the coming month, exports are expected to decline by 29% in the new season.
According to a senior food ministry official, due to the expected low opening balance stock and high diversion for ethanol, sugar exports are expected to decline by 28.57% to around 8 million tonnes in the 2022-23 season.
However, whether or not to allow exports under the Open General License will come down to determining the prevailing quota system after evaluating the price situation after the commencement of sugarcane crushing, the official said.
Sugar season starts from September. Sugarcane crushing season normally begins in October-November and continues till mid-April. The export of sugar in the current season is estimated to be 112 million tonnes.
Overall sugar production is expected to be good, but exports will remain low in the coming season, the official said.
With an opening balance of 6 million tonnes, in the coming season, the supply of sugar will be visible and there is a possibility of more diversion of sugarcane to ethanol. The opening stock of sugar in the last few years was between 80 to 100 million tonnes, but in the 2022-23 season, it is expected to remain at six million tonnes.
The diversion of sugarcane to make ethanol is also likely to be higher in 2022-23 compared to the current season. Against 35 million tonnes of sugar this season, there is a perception of about forty five million tonnes of sugar being diverted to ethanol in the coming season. Another official said that the total sugar production of the country is estimated to be more than 400 million tonnes in the new season as compared to 395 million tonnes in the current season.
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