Policy flip-flop must end; Announce sugar exports only after crop assessment in January: Atul Chaturvedi
Shree Renuka Sugars Director Atul Chaturvedi urged the government to avoid reversing sugar export policies, recommending export decisions only after assessing the 2026-27 sugarcane crop and ethanol needs. He warned policy uncertainty hurts India’s export credibility and opposed unrestricted sugar imports.
In the current sugar season, the Government allowed sugar mills to export sugar. However, as sugar production fell short of expectations, the Government reversed the order and imposed a ban on exports in May.
Atul Chaturvedi, Director at Shree Renuka Sugars, feels that policy flip-flops should be avoided at all costs. He said that the Government should carefully evaluate the sugarcane crop in the 2026-27 season, beginning on 1st October, and that, only after budgeting for ethanol diversion, the export policy should be announced, even if it takes a bit more time.
Q. Should the Government permit sugar exports in the new season of 2026-27?
For India to be relevant as far as sugar exports are concerned, we have to be structurally surplus after providing for diversion to ethanol. Our experience of the last couple of years on exports has not been a very happy one and has raised serious questions about our credibility as an exporter.
Needless to say, export markets are built over a period of time and policy flip-flops never help in these endeavours.
With El Niño queering the pitch during the current year, and sugar stocks at low levels, any talk of exports would appear premature at this point in time.
Q. Should the Government open up exports and allow OGL?
In case the decision-makers develop cold feet in the face of manufactured blending controversy and overly aggressive Social Media, and reduce diversion of sugar towards ethanol, we will have no option but to open up exports to get rid of our surpluses.
However, this would be a very retrograde step and stymie the country’s efforts to increase its energy security. We hope this does not happen and sugarcane farmers and industry are not put to grief.
Allowing sugar imports under OGL would be counterproductive and end up sacrificing the interests of our sugarcane farmers. The example of the Oilseed farmers needs to be kept in mind. Edible oil imports have ended up ensuring oilseed farmers have lost interest, and our imports have surged to the extent of 60% of our consumption, valued at $20 billion and growing.
We should learn from our own examples. Indian farmers have kitchen garden-sized land, which cannot compete with Brazilian farmers.
Q. What policy changes would you like to see vis-à-vis exports?
The policy-makers should not announce export policy in a hurry and never before January, after ascertaining the actual sugarcane crop situation. We have been way off the mark in our estimations of crop in the last two years and ended up reversing export policy. This resulted in avoidable grief among stakeholders.
After clearly ascertaining crop numbers and diversion towards ethanol, we may announce export quantity.
Once the sugar export policy is announced, it should not be reversed under any circumstances, come what may. If prices rise to very uncomfortable levels, we can always import by lowering duties. Policy flip-flops have to be avoided.
To Read more about Rice News continue reading Agriinsite.com
Source : ChiniMandi
