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Govt exhorts sugar mills to export rapidly to pay farmers’ dues

New Delhi: The Indian government has directed all sugar mills to ship quickly so that farmers can receive money right away.

In a notification issued by Ministry of Consumer Affairs, Food & Public Distribution on November 6, the government stated that at the end of sugar season 2022-23, “it is expected that most of sugar mills will be able to sell their production either in domestic market or in international market through exports and will clear the cane dues of farmers in time.”

The announcement follows the Center’s approval of the quota-based export of 6 million tonnes of sugar in an effort to combine the country’s sugar price stability with the financial health of its sugar mills. The Directorate General of Foreign Trade (DGFT) has already announced that sugar exports will continue to fall under the “Restricted” category through October 31, 2023, the statement continued.

The government has allotted a standard export quota of 18.23% of the sweetener’s three-year average production during operating sugar seasons, according to a notification from the food ministry.

It said that sugar mills might trade with the domestic sale quota of any other mills or export themselves, via exporters, or directly.

“This system would ensure lesser burden on logistics system of the country as swapping system would reduce the need to transport the sugar from distant locations to the ports for exports and movement of sugar across the length and breadth of the country for domestic consumption,” the government said.

The ministry also pointed out that sugar mills would incur fewer operating expenses, such as storage and working capital costs. Additionally, the government’s system of exchanging will guarantee “uniform liquidation of sugar supplies of all the mills across the country.”

 

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