Possibility of sugar export in the current marketing season is bleak

04-Jul-2024 03:43 PM

New Delhi. A senior official of the Union Food Ministry has said that the ban on commercial export of sugar may continue at least till October 2024. After this, the removal or retention of the ban can be considered only after a thorough review of the sugarcane sowing area and potential production.

It is noteworthy that the apex industry body ISMA is constantly pressurizing the Central Government to allow the export of sugar.

It says that at the end of the marketing season of 2023-24, the industry will have an outstanding surplus stock of about 91 lakh tonnes of sugar, out of which export shipment of the remaining sugar should be allowed by keeping

the required quantity of stock for the domestic demand and need of the first two and a half to three months of the next marketing season (2024-25). Keeping a huge surplus stock of 91 lakh tonnes of sugar at the end of the season will not only trap huge capital of the millers but will also increase the storage cost on it.

Although this year the southwest monsoon rainfall is estimated to be more than the long-term average and the sugarcane production area has also increased by 1.43 lakh hectares from 55.45 lakh hectares last year to 56.88 lakh hectares,

which is 5.73 lakh hectares more than the normal average area of ​​51.15 lakh hectares, while it may increase further in the future,

but it seems that the government does not want to take additional risk by taking any hasty decision. Despite the supply and availability situation being better, the retail market price of sugar is higher than last year,

while the government is issuing its huge free sale quota every month. The government feels that opening of sugar export may have some psychological effect on the domestic market.