Consideration of proposal to open sugar exports possible only after December
09-Sep-2024 04:10 PM
New Delhi. The central government is giving top priority to ensuring the supply and availability of sugar in the domestic sector and after that intends to increase the production of ethanol.
After being fully satisfied on both these fronts, it wants to allow the export of surplus stock of sugar. Although the sugar industry has been urging for a long time to approve the export of sugar and it is also expected that the government will show a positive attitude on this in the marketing season of 2024-25, but at present its chances are very low.
The government does not seem to be in the mood to open commercial export of sugar right now. According to senior official sources, the proposal for export is unlikely to be considered at least till December 2024.
It is worth noting that in October 2023, the government had issued a notification with information about imposing an indefinite ban on the export of sugar.
The Food Ministry expects the industry to have a backlog of 90 lakh tonnes of sugar at the start of the 2024-25 marketing season, which is about 25 lakh tonnes more than the stock required to meet domestic needs for the next two and a half months.
If domestic production falls by 10 lakh tonnes to 310 lakh tonnes in the 2024-25 season, then an exportable surplus stock of 15 lakh tonnes may remain during the season.
But the government is also aware of the reality of damage to the sugarcane crop due to heavy rains and severe floods, which is likely to affect sugar production.
A similar situation arose in Bihar and eastern Uttar Pradesh two years ago. Officials say that it is difficult to change the sugar export policy until the whole picture becomes clear.
The real situation can be known only after December. Before that the current policy may remain intact.
The Union Food Minister has already said that any decision on sugar exports can be taken only after assessing the possible production of sugarcane and sugar in the next season.