Govt to focus on ethanol needs before considering sugar exports: Food secy

ISMA has urged the government to permit sugar exports immediately, citing favourable global market conditions

A decision on allowing the export of sugar would only be taken after meeting the domestic requirement of ethanol, a senior government official said, while acknowledging that India will have a surplus of around 1 million tonnes of sugar in the 2024-25 season for exports.

 

“We will have some surplus sugar of around 1-1.2 million tonnes after meeting all of our requirement at current levels of production and consumption, but any decision on exports will be taken only after we are fully satisfied that all demand for ethanol has been met,” food secretary Sanjeev Chopra told reporters on the sidelines of the Annual General Meeting of Indian Sugar and Bio-Energy Manufacturers Association (ISMA).

   

Chopra said as of now there is no proposal to allow exports of sugar this season (2024-25 sugar season that started in October) but a final call will be taken once a clear picture emerges on the requirement for ethanol.

 

According to the government's calculation, India’s total gross sugar production in 2024-25 season is projected at 32 million tonnes while the opening stocks are estimated at 7.9 million tonnes that would make a total supply of almost 40 million tonnes.

 

The total sugar consumption in 2024-25 is estimated at 29 million tonnes while diversion for ethanol is estimated at 4 million tonnes. This would leave a surplus of around 6.9 million tonnes.

 

The country needs to have two-and-half months of sugar consumption as opening stocks at the start of each year which means that around 5.7-5.9 million tonnes.

 

Therefore, the surplus that can be exported from the country is somewhere around 1-1.2 million tonnes.

 

Meanwhile, ISMA in its representation made to the government said that the Centre should immediately open up exports as prices in the world markets are favourable and the window for exports is getting squeezed with each passing day.

  “The Brazilian sugar crop will start hitting the world markets somewhere around May, while sugar prices are quoting at around $500 per tonne. Therefore, if we are allowed to export now to capitalise on this short window between now till May, then easily industry can easily get some extra cash which will help up to clear our sugarcane dues accruing to farmers,” ISMA President Gautam Goel told reporters.

  He said the Centre can allow exports in two tranches because as per our estimate, the total available surplus would be somewhere around 2 million tonnes.

 

Meanwhile, Food Secretary Chopra said that the government is also looking to streamline the allocation of surplus rice from Food Corporation of India (FCI) for grain-ethanol makers as the recent allocation of almost 2.3 million tonnes to them has elicited tepid response.

  “We had allocated around 2.3 million tonnes of surplus FCI rice for making ethanol this year but the response from the manufacturers has been timid due to price and we are looking at it as well,” the secretary said.

 

He also said that the Centre will soon link sugar dispatches made by companies with the GSTN portal to ensure that mills don’t over-sell from their allocated monthly quota.