The doors of sugar export are set to remain firmly shut until March 2024, as indicated by a recent report. Government authorities have affirmed that sugar production for the upcoming season is poised to maintain its robust performance. Commencing from October 1, this sugar season is anticipated to usher ample supply. A pivotal factor contributing to this favourable supply projection is the government’s embargo on sugar exports, which is set to persist. The authorities have opted to prolong the export ban to ensure price stability during the festive season.
Significant surge in sugarcane production
Anticipations are high for a significant surge in sugarcane production the following year, primarily driven by the intent to produce ethanol. The byproduct of sugarcane holds the potential for optimal ethanol extraction. Keeping this in view, the Group of Ministers might propose revisions to the ethanol price in the subsequent sugarcane season. The government’s agenda centres on bolstering ethanol production, aiming to elevate its blending in petrol to a notable 20 percent. The rise in rice prices has impacted ethanol output, highlighting the emphasis on producing ethanol from sugar. As a result, sugar mills have championed the call for an ethanol price hike.
A spokesperson from the Food Ministry affirmed that sugar exports will commence on March 31, 2024. Despite bumper sugar production, the government remains steadfast in its decision to abstain from exports, citing the impending festive season as the driving force behind this stance. The strategy also aligns to channel more sugar toward ethanol production. In the current season, a quota of 4.0 million tonnes of sugar has been earmarked for ethanol production, which could escalate to 5.0-5.5 million tonnes in the ensuing season.
The Food Secretary reassured the public that sugar and other essential food items would maintain affordability during the upcoming festive season. Stability is expected in the markets concerning edible oil and wheat prices. The country presently boasts an inventory of 1.08 million tonnes of sugar, with anticipated demand between 4.6-4.8 million tonnes for August and September. Subsequently, a seamless supply is predicted with the advent of sugarcane crushing in October. India’s annual sugar consumption hovers around 2.75 million tonnes.