New Delhi: India will allow an additional export of up to 1.2 million tonnes of sugar in the marketing year ending September 30 in order to avert a price drop caused by a production glut following surplus production. The existing 10 million cap is exceeded by the new limit.
Food Secretary Sudhanshu Pandey said in New Delhi that the government will boost the sugar export ceiling by 1.2 million tonnes.
In order to maintain domestic supply and price stability, the government limited the export of the sweetener at 10 million tonnes for the marketing year in May. Since then, the industry has been calling for an increase in the export cap.
The food ministry reported earlier this week that sugar mills have already reached their annual maximum export cap of 10 million tonnes, an all-time high, and that shipments are likely to rise to 11.2 million tonnes.
Sugar shipments increased from 5.96 million tonnes the previous year to 7 million tonnes in 2020–21.
According to industry group Indian Sugar Mills Association (ISMA), due to the crop being diverted for ethanol production, India’s sugar production could decline to 35.5 million tonnes in the 2022–23 marketing year. In the current marketing year, which ends in September, 36 million tonnes of sugar are expected to be produced.
Prior to the crop’s diversion for ethanol production, sugar production is predicted to increase to north of 39.9 million tonnes in 2022–23 as opposed to the current marketing year of 2021–22’s 39.4 million tonnes.
