Export quota of 6 million tonnes has been allowed from November 1 to May 31, 2023
Export quota of 6 million tonnes has been allowed from November 1 to May 31, 2023
The government, which has allowed export of 6 million tonnes of sugar till May 31 of the current 2022-23 season, on Sunday said it may consider allowing more exports after periodic assessment of domestic production.
A food ministry notification issued on November 5 said an export quota of 6 million tonnes has been allowed from November 1 to May 31, 2023, allowing millers to export either on their own or through exporters or domestically. There is an option to swap with sales quota.
In a statement issued on Sunday, the ministry said that the export quota has been fixed on the basis of the initial estimates available for sugarcane production in the country.
“The sugarcane production in the country will be reviewed from time to time and the quantum of sugar export may be reconsidered based on the latest available estimates,” the ministry said.
The sugar quota allotted to mills has been asked to expedite exports, it added.
The mill-wise sugar export quota for the current season (October-September) has been fixed on the basis of the average production of sugar mills in the last three years and the average sugar production in the country during the same period.
Further, in order to expedite sugar exports and to ensure flexibility to sugar mills in execution of export quota, mills are permitted to surrender the quota partially or fully within 60 days from the date of issue of the order. Or they can swap the export quota with the domestic quota. within 60 days.
“This system will ensure less burden on the country’s logistics system as the swapping system will reduce the need to transport sugar from distant places to ports for export and movement of sugar across the length and breadth of the country for domestic consumption,” the ministry said. he said.
In addition, the swap would also ensure liquidation of the sugar stock of all the mills. It added that the mills which are not able to export may replace their export quota with the domestic quota of sugar mills, which are able to export more mainly due to their proximity to ports.
At the end of the 2022-23 season, it is expected that most of the sugar mills will be able to sell their produce in the domestic or international market through exports and pay the cane arrears of farmers on time.
“Thus, the policy has created a win-win situation for the sugar mills in the country,” the ministry said.
In the ongoing 2022-23 season, the ministry said the availability of sugar for domestic consumption would be 27.5 million tonnes, while 5 million tonnes of sugar would go to ethanol making and the closing balance at the end of the season would be around 5 million tonnes.
Sugar production in the 2022-23 season has already started in Maharashtra and Karnataka from October, while in Uttar Pradesh and other sugarcane growing states, it will start in a week’s time.
In October alone, mills manufactured 4.05 lakh tonnes of sugar, down 14.73% from the year-ago period, according to the cooperative National Federation of Cooperative Sugar Factories Ltd.
The government had restricted sugar exports from June 1 till the end of the 2021-22 season (October-September) to ensure adequate stocks for domestic consumption and to prevent any increase in retail prices during the festive period.
During the entire 2021-22 season, around 11 million tonnes of sugar was exported and earned foreign exchange of Rs 40,000 crore for the country, the ministry said.
Timely payment to sugar mills and low carrying cost of stock also resulted in early clearance of cane arrears of farmers.
It said that till October 31, more than 96 per cent cane arrears of farmers for the 2021-22 season had already been cleared despite record purchases of more than Rs 1.18 lakh crore.
According to the ministry, sugar exports are in the “restricted” category till October 2023. Restricting sugar exports would keep the domestic prices under control and would not generate any major inflationary trend in the domestic market.
The Indian sugar market has already witnessed a very modest price increase which is in line with the increase in the fair and remunerative price of sugarcane to the farmers.
In the last six years, the government has taken several more timely initiatives in the sugar sector to enable the sugar mills to stand on their own.
This season the export of sugar has been allowed without subsidy support and the mills are expected to do well without financial support.
Sugar production stood at a record 35.92 million tonnes in the 2021-22 season. Maharashtra, Uttar Pradesh and Karnataka are the top three sugar producing states in the country.