29 July 2022, New Delhi: In a positive development for the sugar sector, the government has allowed the industry to export additional 1.2 million tonnes of sugar, sources told CNBC-TV18 on Thursday. However, an official notification on the decision is still awaited.
Shares of Shree Renuka Sugars, Balrampur Chini Mills, Dwarikesh Sugar Industries, Dhampur Sugar Mills, and Uttam Sugar Mills were up 2-5 percent at the time of writing.
The government’s decision comes after a group of ministers (GoM) recommended allowing additional exports of sugar as mills demanded permission for the same.
The government had capped exports of sugar for this season at 100 lakh tonnes (10 million tonnes) with an aim to keep the domestic prices under control. India has exported a record 10 million tonnes sugar this season due to higher production.
Indian Sugar Mills Association (ISMA) had written to the food ministry to allow exports above the allowed 10 million tonnes.
Currently, India is the second biggest sugar exporter after Brazil. The country is set to surpass Brazil to become the world’s biggest sugar producer in the current marketing year ending September, with a total output of 36 million tonnes, according to the ISMA estimates.
The global sugar prices have fallen to 12-month low, down 6 percent in July alone.