India is expected to export 30 lakh tonnes of sugar in the upcoming marketing season
06-Jul-2024 12:42 PM
Mumbai. Although the actual production of sugar in India is estimated to be slightly less during the 2024-25 marketing season (October-September), it is still expected to be more than the domestic demand and requirement.
Since there will be a huge backlog of sugar in the next season, which will increase the total availability, the government may allow its export on the demand of the industry.
The Associate Director of a leading multinational company has expressed the possibility of a total production of 340 lakh tonnes of sugar in India during the 2024-25 season, saying that out of this,
30 lakh tonnes can be used in ethanol production and the remaining 310 lakh tonnes of stock will be left for food purposes. He has also estimated the export of about 30 lakh tonnes of sugar from India during the 2024-25 season.
According to the analyst, there may be some increase or decrease in the production estimate, but it is certain that this year once again there will be surplus production of sugar in India and hence there will be no difficulty in meeting the domestic demand and consumption.
In view of the surplus production along with the previous outstanding stock, the Government of India can approve the export of about 30 lakh tonnes of sugar. Commercial export of sugar has been banned in India since June 2023.
It is worth mentioning that the apex industry body - ISMA is also urging the government to open the export of sugar. According to it, in the marketing season of 2023-24,
the total availability of sugar reached 376 lakh tonnes with an outstanding stock of 58 lakh tonnes and production of 320 lakh tonnes.
Out of this, after domestic consumption of 285 lakh tonnes, the industry will be left with a huge stock of about 91 lakh tonnes of sugar.
After keeping a safe stock of 55-60 lakh tonnes to meet the requirement of the first two and a half to three months of the 2024-25 season, the surplus stock that remains should be allowed to be exported so that the liquidity (money flow) of the millers can be maintained.
On the other hand, the government has indicated that it is difficult to consider allowing sugar exports at least till October 2024. This means that now the industry may have to wait till the next marketing season.