The food secretary of India Sanjeev Chopra said that the Government will take a decision to increase the Sugar Export quota next month. According to him, the sugar export quota will be raised after analyzing the sugar production on the domestic front with respect to internal demand.
The Government of India on the 5th of November 2022, has approved exports of sugar to the tune of 60 lakh tonnes for the marketing year 2022-23 (October-September). Uttar Pradesh, the largest sugarcane-producing state of India, managed to fulfill the domestic demand, despite scanty rainfall and pest attack last year.
India has already exported approximately around 110 lakh tonnes of sugar in the last sugar season. Furthermore, if we talk about the current year, Indian sugar mills have dispatched 30 lakh tonnes of sugar for export out of which 18 lakh tonnes of sugar has been shipped and the remaining volume will be exported till the end of May.
Facts On Increasing Sugar Exports In 2023
Asked about the surge in the sugar export quota, Sanjeev Chopra informed the reporters that the Food ministry of India is planning to revise the export quota that it previously announced. Thus, they will collectively take a decision to increase the sugar export quota depending on domestic production as well as internal demand.
Besides that, Chopra also mentioned that there are contrary views on domestic sugar production; a clear estimate of which could be obtained by the end of this month or next.
Additional Secretary of the food ministry of India, Mr. Subodh Singh said, “We will have a meeting with sugarcane commissioners of all the sugar-generating states next month. We will reassess production estimates and then we will decide the quantity of sugar that can be exported.” He also mentioned that sugar production would not be less than 340-345 lakh tonnes in 2023. Thus, the Government is planning to increase the Sugar Exporters‘ quota this year.
Indian Sugar Mills Association (ISMA) mentioned that the sugar mills have a contract to export 55 lakh tonnes of the sweetener in the current marketing year i.e. by the end of September.
The production of sugar till January 15, 2023, is 156.8 lakh tonnes as against 150.8 lakh tonnes of the previous year. According to Sanjeev Chopra (Food Secretary), if the minimum selling price of sugar is increased from Rs 31/kg then, the mills could earn good revenue from variable streams that also include ethanol and sweetener.
The government has set the aim to attain around 12% of blending ethanol into 20 and the target is to reach up to 20% by the year 2025. This target is attainable by sourcing ethanol from other feedstock such as maize, sugarcane, and grain.
The Bottom line
Domestic production of sugar is enough to fulfill the internal demand thus; the Government is reassessing demand-supply data of sugar and is mulling over whether or not to increase the current sugar export quota.
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