ISMA renews pitch for removal of sugar export curbs
The Indian Sugar Mills and Bio-Energy Manufacturers Association (ISMA) has urged the government to lift export restrictions, citing sufficient domestic sugar supplies and ethanol production needs. For the 2024-25 season, ISMA projects a 2% drop in sugar production to 33.11 million tonnes but anticipates a closing stock of 13.35 million tonnes. The association requests a revision of the minimum sales price to Rs 3900/quintal due to rising costs, and notes that 94.8% of cane dues have been cleared for the current season.
Citing sufficient supplies of sugar for domestic consumption and ethanol production, Indian Sugar Mills and Bio-Energy Manufacturers Association (ISMA) has urged the government to lift the restrictions on exports of the sweetener.
ISMA had projected a marginal 2% drop in sugar production in the next 2024-25 season (October-September) at 33.11 million tonne (MT) compared to current year. While estimating an opening stock of 9.05 MT on October 1, 2024, the industry body has projected net sugar availability of 42.35 MT in 2024-25 sugar season.
ISMA has projected domestic consumption of sweetener at 29 MT in the next marketing year, which would lead to a closing stock of 13.35 MT on September 30, 2025.
“We anticipate sufficiently higher sugar production in the next 2025-26 season because of adequate rainfall in this monsoon season and the production in the next sugar year would be sufficient to meet ethanol blending programme and exports while ensuring adequate domestic supplies,” Deepak Ballani, Director General, ISMA, told FE.
Ballani said that allowing around 2 MT of sugar in the current season would help companies save carrying cost of sweetener and reduce interest burden. In the current 2023-24 season, the government has not allowed sugar exports to boost domestic supply and control retail prices.
According to the agriculture ministry, sugarcane sowing this season has been completed with a total sown area of 5.76 million hectare (MH), which is marginally higher than normal sown area compared to the previous year. According to ISMA, area under sugarcane this season is 5.6 MH, a 6% decline from previous season.
The industry body has urged the government to enhance minimum sales prices (MSP) of sugar by the millers with the corresponding increase in fair and remunerative price (FRP) prices of sugarcane paid to farmers.
MSP has remained unchanged since 2018 at Rs 3100/quintal.
“The MSP was fixed when FRP was Rs 275/quintal and we have requested the government to revise it to Rs 3900/quintal because of corresponding increase in FRP over the years,” Ballani said.
The government has approved an 8% hike in FRP of sugarcane to be paid to farmers for the 2024-25 season (October-September) to Rs 340/a quintal.
Officials said the government would take appropriate measures keeping in consideration the interest of consumers as well as the industry.
Meanwhile, Food minister Pralhad Joshi has said in the current sugar season, Rs 1.05 trillion or more than 94.8% cane dues have been cleared so far which is the lowest level. In the 2022-23 sugar season, against cane dues payable of Rs. 1.14 trillion, 99.8% has been paid to the farmers.
Retail inflation in sugar was 6.09% in June on year while the rise in price of the sweetener has been single digit for the last several years. In the last four years, inflation in sugar was at a high of 8.02% in January this year.
Source Link : https://www.msn.com/en-in/money/markets/isma-renews-pitch-for-removal-of-sugar-export-curbs/ar-AA1ohxgi
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