31 October 2022, New Delhi: After two years of bumper business, the central government has now decided to bring back the quota in sugar exports. According to an official notification issued by the Director General of Foreign Trade late Friday, the ban on free exports will be increased till October 31, 2023.
Millers and officers from the Directorate of Sugar, Department of Food and Civil Supplies, said that the Centre is expected to release mill-wise export quotas in two tranches, with the first notification to be released on Monday.
In anticipation of the export policy, the mills have already inked orders worth 20 lakh tonnes.
Indian sugar had been witnessing a bull run across the world market, with major producers like Brazil diverting towards ethanol in view of the better crude prices.
Millers and officers, in the know of the development, said that the central government has finalised the fresh sugar export policy. A total of 80 lakh tonnes of sugar would be allowed to be exported in the current sugar marketing season. Out of this, the first mill-wise quota of 60 lakh tonnes is expected to be announced on Monday. The remaining quota would be released after taking a stock of the situation after January or February next year.
Like the last season, the mills would not be given a financial incentive for exports this year too. The exports last season had helped the mills clear off their cane payment, despite a back-to-back bumper season. To be sure, the majority of the exports were from mills in Maharashtra that had made a huge export, utilising the proximity of sea ports there.
This season, India is expected to produce 360 lakh tonnes of sugar, and with an opening stock of 55 lakh tonnes as of October 1, 2023, the total availability of sweetener for the present season is 415 lakh tonnes. With an estimated domestic consumption of 270 lakh tonnes, the country is left with around 145 lakh tonnes of sugar storage. With 80 lakh tonnes of exporting, this would leave the government with 65 lakh tonnes of sugar for the opening stock during the 2023-24 season.
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