Centre may impose blanket ban on sugar export in the wake of rising prices

Govt plan follows less-than-expected production in 2022-23 season

The Centre is likely to impose a blanket ban on sugar export in the wake of rising prices after lower-than-expected production in the 2022-23 season, which started in October, sources said.

According to the existing quota, mllers are allowed to sell about 6 million tonnes of sugar in the 2022-23 crop marketing year (October to September), as against 11 million tonnes last season. About 5.8 million tonnes have already been shipped out of the country, while the remaining is in transit.

Earlier this month, the Centre raised the quantum of sugar that mills can sell in the open market to ensure better supplies.

According to official estimates, sugar production in the 2022-23 season is expected to be 32.7 million tonnes as against the earlier projected 35.9 million tonnes, a fall of almost 9 per cent. The drop in output is mainly due to lower-than-expected production in Maharashtra, which is one of the main growing states.

On Thursday, Indian Sugar Mills Association (ISMA) lowered the country’s sugar production estimate from the projected 34 million tonnes to 32.8 million tonnes in the current marketing year and said it expected 4 million tonnes to get diverted towards ethanol as against the earlier estimated 4.5 illion tonnes.

For Maharashtra, it said sugar output was expected to be 10.5 million tonnes in the 2022-23 marketing year, from the forecast of 12.1 million tonnes. Meanwhile, ex-mill sugar prices have risen by almost Rs 150-200 per quintal during the past month.

In early April, ex-mill sugar price in Uttar Pradesh was being quoted at Rs 3,590-3,710 per quintal, as against Rs 3,320-3,360 in Maharashtra, Rs 3,295-3,345 in Karnataka, and Rs 3,340-3,510 in Gujarat. The per-quintal prices were Rs 150-200 less than the beginning of March.