India set to allow export of 5 million tonnes of sugar in first tranche for new marketing year
India set to allow export of 5 million tonnes of sugar in first tranche for new marketing year
India is ready to allow export of 5 million tonnes of sugar in the first tranche for the new marketing year beginning October, two government sources said on Wednesday.
“export permission” 5 million tonnes of sugar That is expected in the coming weeks and once we have a better understanding of the production for the next sugar year, we can allow another 3 to 5 million tonnes for exports.
“While it is a bit early to get a clear idea about next year’s production, initial estimates suggest that sugar production in 2022-23 will be around this year’s record 36 million tonnes,” the official said.
On October 1, 2022, when the new season begins, the carryover stock of the mills from the previous season is expected to be 6 million tonnes as against 8 million tonnes a year ago.
“The need for, after factoring in local demand” ethanol production And the requirement of their annual carryover stock to the mills, we believe that India will have a large exportable surplus in the year 2022-23,” said another source.
“But due to uncertain weather affecting crops and agricultural production, we do not want to allow exports of 8 or 9 million tonnes at a time only,” said another source. “We would rather be cautious.”
India earlier this year banned wheat exports and last week banned rice shipments as adverse climatic conditions affected production and planting.
India’s domestic sugar consumption is estimated at around 27.5 million tonnes and mills are expected to divert 4.5 million tonnes Sugar for ethanol production in 2022-23 season, The mills will set aside at least 6 million tonnes of sugar as their annual carryover stock.
To capitalize on the attractive global prices, traders have already signed deals to export 4,00,000 tonnes of raw sugar for the 2022/23 season.