Government will look at allowing sugar export from new crop in September-October: Industry expert

The possibility of sugar export in the current season remains uncertain, though experts believe the government may permit sugar export for the new crop sometime in September/October.

Speaking on export possibilities, sugar expert and Director of Gradient Commercial Pvt. Ltd., YatinWadhwana, said, “The government will look at allowing export of sugar from the new crop sometime in September/October and it will be a graded approach with quota system with 1-2 million MT in the first tranche followed by subsequent quantities based on the progress of the crop and the Ethanol programme. As always their priority will be domestic consumption, followed by the ethanol blending programme and exports of any further surplus. Given the current progress of the Monsoon in the growing areas and the crop condition we can estimate a sugar production of upwards of 32 million MT after diversion to Ethanol for the next crop, which means that there will be surplus available for export after taking care of the Ethanol blending programme.”

Recently, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex sugar body, has asked the government to re-consider permitting export of surplus sugar after due consideration of domestic demand and supply. Sugar body believes, with the opening stock of around 56 lakh tonnesin October 2023 in addition to forecasted domestic consumption of nearly 285 lakh tonnes for the season, will result in higher closing stock of 91 lakh tonnes by the end of September 2024. This estimated surplus, amounting to 36 lakh tonnes above the normative stock of 55 lakh tonnes, can potentially lead to additional costs for the millers on account of idle inventory and carrying costs. Therefore, ISMA has urged the Government to re-consider allowing sugar exports. This will boost the financial liquidity of sugar mills and enable timely payments to cane farmers. ISMA believes that allowing exports will contribute to the smooth functioning of the sugar industry and foster economic stability.

India had imposed restrictions on sugar exports due to concerns about a poor harvest and high domestic prices.