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India will ship an additional 1.2 million tonnes of sweetener this year after raising its sugar export ceiling due to robust production.
The Indian Sugar Mills Association has petitioned the government to permit exports of up to 700,000 tonnes of raw materials along with an additional 1 million tonnes.
India, the second-largest producer of sugar in the world, would allow millers to export an additional 1.2 million tonnes in the fiscal year that ends in September, according to Friday’s remarks from Food Secretary Sudhanshu Pandey.
This is in addition to the government’s current export quota of 10 million tonnes, which was set in May to stifle international trade and safeguard food supply. Growers had sought for the quota to be lifted to prevent defaults on committed contracts because inventories currently appear to be sufficient to fulfil local consumption.
The marketing year 2020–21 saw an increase in sugar exports to 7 million tonnes from 5.96 million tonnes the year before. Additionally, it stated that activities for crushing sugarcane would start in Maharashtra, Karnataka, and other states around the first to third week of October 2022. As a result, “sufficient sugar would be available in the country at reasonable prices & retail pricing would probably remain stable,” it stated.
According to the food ministry, this year’s sugar exports have reached almost 10 million tonnes, and they have contributed to a Rs 33,000 crore increase in the sugar mills’ liquidity.
A further 1.2 million tonnes of exports would increase sugar mills’ liquidity by Rs 3,600 crore. The ministry added that this will allow mills to pay farmers’ outstanding cane price debt, which as of August 4 was estimated to be worth approximately Rs 9,700 crore.
If this much sugar would be exported, it would help with generating foreign currency and minimizing the trade imbalance, it added.
Due to the diverted use of sugarcane for ethanol production, industry group Indian Sugar Mills Association (ISMA) recently predicted that India’s sugar production could decrease marginally to 35.5 million tonnes in the 2022–23 marketing year, beginning in October.
Net sugar output is predicted to increase, from 39.4 million tonnes in the current 2021–22 marketing year to 39.99 million tonnes in 2022–23, before ethanol diversion is taken into account.
According to ISMA, the next marketing year, 2022–2023, will see a 4.5 million tonne decrease in sugar production as a result of the conversion of cane juice and B-molasses to ethanol.
In 2022–2023, it is anticipated that the annual domestic consumption will be roughly 27.5 million tonnes, leaving an excess of about 8 million tonnes for exports.