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Informist, Monday, Jan. 20, 2025

 

--Govt source: To lift ban on sugar exports later in the day

--CONTEXT: India had banned sugar exports in 2022 

--Govt source: India to allow 1 mln tn sugar exports in season ending Sept

 

NEW DELHI – The government will lift the two-year ban on sugar exports later in the day, a senior government official told Informist. The government will allow 1 million tonnes of sugar exports in 2024-25 (Oct-Sep), he added. "The notification will be out soon and immediately applicable," the official said. 

 

Amid concerns about lower sugar production, the government had banned sugar exports in June 2022, and this was extended to 2023 until further orders. India is the second-largest sugar producer, after Brazil. In 2021-22, India exported a record 11 million tonnes of sugar, worth INR 400 billion.

 

Though export restrictions were in place, India had allowed sugar exports through diplomatic deals. Also, the restrictions did not apply to sugar being exported to the EU and the US under the CXL concession and tariff rate quota as per the prescribed procedure.

 

Sugar mills have been urging the government to allow 2 million tonnes of sugar exports to offload the surplus sugar in the country and improve the financial liquidity of mills. Exports will help mills clear cane dues on time and support domestic prices of the sweetener. However, India's entry into the global market is likely to lower international sugar prices. 

 

Sugar prices are lower than last year, but sugarcane costs have increased considerably, Prabhakar Rao, president of the Indian Sugar & Bio-energy Manufacturers Association, said in December. In February, before the General Election, the Centre announced a hike of INR 25 in the fair and remunerative price of sugarcane to INR 340 per 100 kg. For cane purchases, mills have to pay farmers prices decided by the government.

 

ISMA estimates sugar production in 2024-25 (Oct-Sep) at 29.3 million tonnes. However, with last year's carry-forward stocks of 7.8 million tonnes, India has a comfortable stock for consumption and ethanol diversion, according to the industry. India's annual consumption of sugar is 28-29 million tonnes. 

 

Sugar stocks were trading higher amid media reports of likely sugar exports. Shares of Dalmia Bharat Sugar and Industries rose nearly 6% to INR 381 on the National Stock Exchange, while Avadh Sugar& Energy surged nearly 6% to INR 464, and Shree Renuka Sugars gained 5% to INR 40.30.  End

 

Edited by Avishek Dutta

 

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