Informist, Thursday, Sep 26, 2024

--Food Minister: Govt mulling over lifting sugar export ban

--Food Minister: Petroleum min mulling ethanol rate hike for next season

--Food minister: Govt mulling hike in minimum sale price of sugar

NEW DELHI - The government is considering lifting the ban on sugar exports, Food Minister Pralhad Joshi said today. The government will decide on exports once the estimates on sugarcane output and the opening balance of sugar for the next sugar season starting October are available, the minister said.

"Exports had to be curbed last year as the production was lower than expectations. For this year, a decision is only likely once we have the numbers for the estimated crop production (of sugarcane)," the minister said on the sidelines of the India Sugar & Bio-energy conference here today.

"The expectations are that production will be good (next year). However, a decision (on exports) will come depending on where our closing stocks, balance, and opening stocks stand at,” he said responding to a question on the prospects for sugar production. "We are hopeful that sugar production will be good this year," he added.

According to preliminary estimates of The Indian Sugar and Bio-Energy Manufacturers Association released on Jul 30, gross sugar output in the 2024-25 season (Oct-Nov) is estimated at 33.31 mln tn, down 2% from 33.99 mln tn last season. Gross sugar output is estimated before sucrose diversion for ethanol making.

The minister also said the government was considering raising the price of ethanol. "Our ministry is nodal ministry for ethanol, and we are in touch with the petroleum ministry. The hiking of ethanol price is well under consideration," he said.

Rates of ethanol derived from sugarcane feedstock, namely sugarcane juice and B-heavy molasses have not been hiked since the 2022-23 ethanol supply year (Nov-Oct). Currently, ethanol produced from cane juice is priced at 65.61 rupees per litre, while ethanol from B-Heavy and C-Heavy molasses are priced at 60.73 rupees and 56.28 rupees per litre, respectively.

The minister also said that the government is considering a proposal to increase the minimum selling price of sugar, which has remained unchanged at Rs 31 per kg, since February 2019 when it was last hiked.

The minister's statement comes a month after the government lifted restrictions on ethanol production from sugarcane juice, B-Heavy and C-Heavy molasses for the next ethanol supply year that begins in November. The government aims to achieve an ethanol blending target of 20% by 2025-26. End

Reported by Pallavi Singhal and Afra Abubacker

Edited by Saji George Titus

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