In anticipation of higher domestic production in the next season, the government has approved an additional 1.2 million tonnes (MT) of sugar exports for the current season.
This approval is in addition to around 10 MT of sugar already exported in the current season (October 2021-September 2022).
The projected sugar exports of more than 11 MT are expected to be the highest ever for a season.
The additional sugar export quota was recently approved by a committee consisting of a group of ministers.
Food ministry sources told media that, despite the approval of additional quantity of sugar exports, the season's opening stocks on October 1 would be between 6 - 6.5 MT. An official said, "This would meet the domestic demand for the festive season of October and November."
According to the official, "The additional sugar exports approved also include a request for imports from Sri Lanka, Maldives, Nepal, and other nations."
India’s total sugar production is likely to increase by 5,00,000 tonnes to 36 million tonnes in 2021-22 season as compared to the previous estimate of 35.5 million tonnes.
Nepal, Bangladesh, Sri Lanka, United Arab Emirates, Afghanistan, Indonesia, and Somalia are just a few of the countries to which sugar has been exported.
The government should permit sugar mills to export an additional 1 MT during the current season, the Indian Sugar Mills Association (Isma) has previously urged. This will enable the mills to fulfill their export commitments.
This restriction on exports comes after a record shipment of sugar this season (2021-22).
Meanwhile, sugar mills have urged the government to allow the export of 8 MT of the sweetener for the upcoming season under the open general licence (OGL). According to Isma, this will help the sugar mills in future export contracts well in advance before the commencement of the season.
In a recent communication to commerce minister Piyush Goyal, ISMA president Aditya Jhunjhunwala stated that it is time to review the current sugar export policy for the upcoming year because the market prices are firm. He added that advance export contracts would lead to better cash flows and payments to farmers in the following season.
