Doubt over opening the door for sugar exports due to priority given to ethanol production

03-Sep-2024 05:59 PM

New Delhi. According to government data, the sugarcane sowing area at the national level increased to 57.68 lakh hectares during the current year, which is 57 thousand hectares more than last year's area of ​​57.11 lakh hectares. However,

the area of ​​sugarcane estimated by the apex industry body - Indian Sugar and Bio Energy Manufacturers Association (ISMA) on the basis of satellite images is less than the government estimate.

Due to good monsoon rains in the major producing states, the sugarcane crop is in better condition, but there are reports of damage to it in some places.

Overall, the next production of sugar is expected to be around the 2023-24 season. ISMA is repeatedly urging the government to open the export of sugar, which has been banned since June 2023, citing data, but the government wants to give priority to ethanol production instead.

In this sequence, it has withdrawn the quantitative control on the use of sugar in ethanol production in the marketing season of 20-24-25.

This will give the millers an opportunity to increase the production of ethanol and if there is a slight decline in the production of sugar, then the surplus stock available with the industry can be used.

It appears that there will be no change in the government's policy towards sugar export even in the marketing season of 2024-25.