 "Sugar")
Sugar industry body Isma has urged the government to allow 20 lakh tonnes of sugar exports in the current marketing year ending September as shipments of surplus sweetener would boost liquidity of millers enabling them to make cane payments to farmers on time.
For the current 2023-24 marketing year (October- September), the government has not allowed sugar exports to boost domestic supply and control retail prices.
In the preceding marketing year, sugar mills were allowed to export around 60 lakh tonnes of sugar.
In a statement on Monday, Indian Sugar and Bio-Energy Manufacturers Association (Isma) said that the production has reached about 314 lakh tonnes as of the end of April 2024.
With additional output of 5-6 lakh tonnes expected from mills in Karnataka and Tamil Nadu, the final net sugar production is estimated to be close to 320 lakh tonnes in 2023-24 marketing year (October-September).
The net sugar production stood at 328.2 lakh tonnes during the 2022-23 marketing year with a diversion of 38 lakh tonnes of sweetener for ethanol-making from sugarcane juice and B-heavy molasses.
More From This Section
"Taking into account an opening stock of approximately 56 lakh tonnes as of October 1st, 2023, and a forecasted domestic consumption of 285 lakh tonnes for the season, Isma projects a significantly higher closing stock of 91 lakh tonnes by September 30th, 2024.
"This estimate, amounting to 36 lakh tonnes above the normative stock of 55 lakh tonnes, can potentially lead to additional costs for the millers on account of idle inventory and carrying costs," Isma said while making a case for allowing exports.
The association also expects a moderate crushing season in 2024-25 due to several factors, including the early announcement of an increased Fair and Remunerative Price (FRP) for sugarcane, favourable pre-monsoon rainfall, and forecasts indicating an above-normal monsoon. These factors are further expected to lead to a higher stock in the coming year.
In light of these projections, Isma "urged the Government to consider permitting the export of 20 lac tons of sugar in the current season.
This would not only ensure sufficient stocks for domestic consumption and the Ethanol Blending Program (EBP) but also improve the financial liquidity of sugar mills and enable timely payments to farmers, it added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
