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Informist, Monday, Jan. 20, 2025

 

--Food minister: Govt sets 1 mln tn sugar export quota for 2024-25 season 

 

NEW DELHI – The government has allowed exports of sugar and has set the quota at 1 million tonnes for 2024-25 (Oct-Sep), Pralhad Joshi, Minister of Consumer Affairs and Food and Public Distribution, said on X. The move aims to stabilise sugar prices and ensure timely payments to farmers, Joshi added. "This ensures price stability, supports 5 core (50 million) farmers, 5 lakh (500,000) workers, and strengthens the sugar sector," Joshi said. 

 

"All grades of sugar can be exported by a sugar mill/refinery/exporter, up to the extent of quantity mentioned..," the food department notification said on Monday. 

 

Amid concerns over lower sugar production, the government had banned its 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 concessions and tariff rate quota, as per the prescribed procedure.

 

Sugar mills that don't want to export can surrender their quota or exchange their quota partially or fully before Jan 31, according to the notification. Mills can also exchange their export quota with the domestic quota of any other sugar mill. The exchanged quota will be adjusted by the end of the sugar season ending in September, it added. 

 

All sugar mills need to upload export details on the food department's portal on a monthly basis, the notification said. 

 

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. For cane purchases, mills have to pay farmers prices decided by the government.

 

The sugar industry has called the government's decision on exports "timely" as it will enhance financial liquidity and ensure timely payments to sugarcane farmers. The decision will contribute to the overall strength of the agricultural economy, Indian Sugar & Bio-energy Manufacturers Association Director General Deepak Ballani said in a note. 

 

"Along with sugar exports nod, I hope the government will increase ethanol prices soon, which is equally important for the producers," Uppal Shah, founder and managing director, AgriMandi live, said in a note. Sugar mills have been waiting for the government to announce revised ethanol prices for 2024-25 (Nov-Oct).

 

Sugar production is estimated at 29.3 million tonnes in 2024-25 (Oct-Sep) by ISMA. 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. A reduction in cost of rice from Food Corp. of India for ethanol production has also boosted market sentiment. End

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

 

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