Maharashtra mills to benefit after Centre allows sugar exports
The Centre has approved the export of 10 lakh tonnes of sugar for the 2024-25 season, with Maharashtra receiving the highest quota of 3.75 lakh tonnes. Mills can exchange export and domestic quotas, ensuring price stability and supply. Global sugar prices currently stand at $490 per tonne, offering mills higher revenue through exports.
Kolhapur: The Centre on Monday gave its go ahead to export 10 lakh tonne of sugar for the 2024-25 season. Though the decision was delayed, it was much awaited and expected by the industry. Last season, 2023-24, the central govt export of sugar was banned.Out of the 10 lakh tonnes, sugar mills from Maharashtra have been given the highest allocation of 3.75 lakh tonnes, which is eventually expected to touch around 5 lakh tonnes since most of the mills from Uttar Pradesh exchange their quota with their counterparts in Maharashtra.Mills from Uttar Pradesh have been granted a quota of 2.74 lakh tonnes, while Karnataka mills have been granted 1.75 lakh tonnes. According to the notification issued by the Centre, each mill gets around 3.2% of their average production of the last three years as the export quota. New mills or those restarting their operations in the 2024-25 season are also eligible to get the quota based on the estimated production to be verified by the respective sugar cane commissioner.
Export is permitted from the date of the order until Sept 30, 2025. The govt has also granted flexibility for the mills to surrender or exchange their export quota with the domestic quota. According to the central govt, the move aims to stabilise domestic sugar prices and ensure supply during periods of deficit. The mills will get additional revenue through exports.Vijay Autade, a Kolhapur-based sugar industry expert, said, “Currently, the global price of sugar is around $490. The mills will get Rs4,150 per quintal, and after deducting the transporting and loading charges, the price will be Rs3,900 per quintal. Currently, the mills get Rs 3,500 per quintal in the domestic market.”
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Source : The Times Of India
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