Possibility of allowing export of one million tonnes of sugar

20-Jan-2025 10:47 AM

The Indian government has decided to allow the export of 10 lakh (1 million) tonnes of sugar, given the declining prices in the domestic market.

This decision comes after pressure from key sugar industry bodies like the Indian Sugar and Bio Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF), which have been advocating for exports to help mills achieve better returns.

While ISMA had initially pushed for an approval to export 20 lakh tonnes, the government had previously stated that export decisions would depend on the surplus stock.

Key priorities for the government include ensuring sufficient sugar supply for domestic consumption and increasing the use of surplus sugar for ethanol production. Only after meeting these priorities would the government consider export options.

The Central Government has estimated a sugar production of 320 lakh tonnes for the 2024-25 marketing season, with domestic consumption expected to be between 285-290 lakh tonnes. Additionally, around 40 lakh tonnes of sugar may be used for ethanol production.

After accounting for the opening stock of 79 lakh tonnes, the expected surplus stock at the end of the season would be about 69 lakh tonnes.

After reserving 58-60 lakh tonnes for the first two and a half months of the next marketing season, a surplus of 9-10 lakh tonnes would remain, which is the quantity that will be allowed for export.