Sugar industry excited by the possibility of better production and favorable government policy
02-Aug-2024 05:40 PM
Mumbai. Due to increase in sugarcane sowing area at the national level and normal monsoon rainfall, domestic production of sugar is expected to increase during the 2024-25 marketing season (October-September).
On the other hand, the government has indicated that the proposal to increase the ex-factory minimum selling price (MSP) of sugar can be considered in the next few days.
If there is a great production, the government can also consider opening the export of sugar as the industry will already have an exportable surplus stock of 30-35 lakh tonnes.
The industry expects the next marketing season to be favorable. Millers feel that in the next season the government can remove most of the controls and restrictions imposed on sugar mills.
It is also confident that the amount of use of sugarcane for ethanol production can be increased or the limit of control can be removed. This will provide a lot of relief to the millers.
On the other hand, the government is also expecting better production of sugarcane and sugar in the next marketing season because the weather and monsoon conditions are favorable.
The Union Food Secretary had said recently that the environment for the sugar industry seems to be improving.
The apex industry body - Indian Sugar and Bio Energy Manufacturers Association (ISMA) has said that overall the marketing season of 2024-25 is very promising and it can be very good for the indigenous industry.
It is worth mentioning that ISMA had initially estimated the total production of 333.10 lakh tonnes of sugar during the 2024-25 season, which was about 2 percent less than the gross potential production of 39.90 lakh tonnes of the 2023-24 season.
This also included the amount of sugar used in the manufacture of ethanol. According to ISMA, the industry is likely to have a huge surplus stock of 90.50 lakh tonnes of sugar at the beginning of the 2024-25 season and with a production of 333.10 lakh tonnes,
its total availability will reach 423.50 lakh tonnes. Out of this, 290 lakh tonnes will be consumed domestically and 133.50 lakh tonnes of outstanding stock will remain.
The government will have to decide how much sugar should be allowed to be used in the manufacture of ethanol and whether permission should be given to start its export or not. It is necessary to keep a stock of 55-60 lakh tonnes.