Sugar export curbs review in October after crop estimates
NEW DELHI : The government in October will review its sugar export policy, which is currently under the restricted category, in October, after state cane commissioners come up with their crop estimate for the 2023-24 season.
Current restrictions, under which each sugar mill gets an export quota, are in place until October end.
“All options are open to the government as far as sugar export is concerned, but it is too early to take a call on exports. There has been no proposal on sugar export policy submitted by the department concerned yet,” a top government official said.
“Let the current season end and cane commissioners come up with crop estimates for the next season. Accordingly, a decision on exports will be taken in the second half of October after assessing 2023-24 cane crop.”
Every year, the central government takes the view of state governments on domestic consumption and ethanol mixing with petrol before taking a call on the export policy for sugar.
A meeting with state cane commissioners is scheduled for 31 August.
Mint on 2 June had reported that the department of food and public distribution was unlikely to give sugar mills a free hand in exporting sugar in 2023-24 (October-September) to ensure domestic supply and keep prices in check.
India, which pipped Brazil in 2021-22 to become the world’s largest producer and the second-largest exporter of sugar, restricted export of sugar in October last year for a year and opted for a mill-wise quota system.
However, sugar mills have already overshot their quotas. By 31 May, they had exported 6.1 million tonnes of their full year’s quota of 6 mt. In the 2021-22 sugar season, India exported 11.2 mt sugar.
Queries sent to the ministries of food and public distribution, commerce and consumer affairs remained unanswered till press time.
The Indian Sugar Mills Association (ISMA), a trade body, in the beginning of August released its preliminary estimate of sugar production for the 2023-24 season at 31.7 million tonnes (mt) compared with 32.8 mt for the ongoing season.
As per agriculture ministry data, the area under sugarcane crops till 25 August had gone up to 5.61 million hectares from 5.56 million hectares during the corresponding period last year.
Although the crop area has gone up, weak monsoon in August due to El Nino raises concerns over production.
Recommended for you
