Surplus stock of 91 lakh tonnes of sugar expected at the end of the current marketing season
03-Jul-2024 04:18 PM
New Delhi. The apex body of the indigenous sugar industry - Indian Sugar and Bio Energy Manufacturers Association (ISMA) has estimated that there will be a huge surplus stock of 91 lakh tonnes of sugar with the millers at the end of the current marketing season and has urged the government to take necessary steps to make good use of the excess sugar.
According to the data released by ISMA, at the beginning of the current marketing season (October-September) of 2023-24, the industry had a previous outstanding stock of 56 lakh tonnes of sugar, while with the production of 320 lakh tonnes during the season,
its total availability is likely to increase to 376 lakh tonnes. Out of this, 285 lakh tonnes will be consumed domestically and then at the end of the marketing season, a huge surplus stock of 91 lakh tonnes of sugar will be left with the millers,
which is 35 lakh tonnes more than the stock of 56 lakh tonnes available at the beginning of the season. This additional stock of sugar will become a burden for the millers and will slow down their cash flow. In view of this, the government should consider allowing the export of some part of it (up to 20 lakh tonnes).
According to ISMA, the price of sugar in the domestic sector has remained stable within a certain limit while the supply and availability situation remains comfortable.
On the other hand, the huge additional stock of 35-36 lakh tonnes of sugar left with the mills will not only affect the liquidity but will also increase the expenses of the millers.
Due to good monsoon rains, the domestic production of sugarcane and sugar may improve further in the 2024-25 season. In fact, the production condition has improved due to permission to use limited quantity of sugar in ethanol production.
ISMA has requested the government to approve the export of surplus stock of sugar after seriously considering the equation of domestic demand and supply. Anyway, only three months are left for the end of the current marketing season.