Allow export of 2 million tonnes sugar in 2024-25: WISMA
The private sugar millers of India have urged the government to permit the export of 2 million tonnes of sugar in the 2024-25 season, given the expected 55-60% higher carry-forward sugar stocks. WISMA anticipates Maharashtra’s sugar production to decrease by 10% due to reduced sugarcane acreage from drought. ISMA and WISMA demand an upward revision of the sugar MSP and restructuring of loans, citing the impact of ethanol production restrictions and the need for timely policy announcements to aid financial stability.
The private sugar millers of the country have demanded that the government should allow export of two million tonnes of sugar in the upcoming sugar season 2024-25 as the industry expects the carry forward sugar stocks to be 55-60% higher than the norm.
“In 2024-25 season, 20 lakh tonnes of sugar export should to be allowed. The industry anticipates the excess sugar stocks to be in the range of 85-90 lakh tonnes as against the requirement of 55 lakh tonnes of sugar necessary for 2.5 months of consumption,” said WISMA in a media release.
The West Indian Sugar Mills Association (WISMA) and and the Indian Sugar and Bio- Energy Manufactures Association (ISMA) recently held a joint meeting in Pune.
Maharashtra’s 2024-25 sugar production to decline by 10%: WISMA expects the sugarcane acreage to decrease to 12 lakh hectares in 2024-25 season from 14 lakh hectares in the previous year due to last year’s drought. The decrease in cane acreage is 25% in Marathwada region, while there is an increase of 5% in western Maharashtra except Solapur, which has seen a drop of 10%.
“Therefore, sugar production of Maharashtra would be lower by about 10% than previous year’s 110 lakh tonnes,” said WISMA.
Ethanol policy and loan restructuring:
ISMA and WISMA have demanded upward revision of the minimum selling price (MSP) of sugar, which was fixed at Rs 31/kg in February, 2019.
“MSP of sugar should be revised upwards and a formula needs to be worked out to align MSP with the FRP of sugar,” the release stated.
WISMA has said that the ethanol supplies were severely affected due to the central governments’ restrictions on sourcing of ethanol from the sugarcane juice and B heavy molasses for ethanol production, imposed in December 2023.
“The decision has seriously impacted the working days of distilleries by reducing them to 180 days against the normal duration of 270 to 330 days. This has created immense financial problems for the sugar mills by way of their liquidity getting blocked in unutilized stocks affecting repayment of loans availed to set-up or expand the ethanol plants,” the release stated.
Both the associations have requested the government to announce the 2024-25 ethanol policy by August 15 to help the sugar mills prepare for the required ethanol production and supply in time.
The millers have claimed that the increase in FRP, the restriction on ethanol production and lower off take of monthly sugar quota has given financial jolt to the sector.
“Sugar mills need restructuring of loans to help them honour the repayment of all short, medium and long term loans of SDF, NCDC, Co-operative banks and the nationalised banks,” said WISMA.
Source Link : https://www.msn.com/en-in/entertainment/bollywood/allow-export-of-2-million-tonnes-sugar-in-2024-25-wisma/ar-BB1qi1uJ
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