The ban on commercial export of sugar is likely to be extended

06-Sep-2024 07:48 PM

New Delhi. Along with ensuring adequate supply and availability of sugar in the domestic market, the priority of the Central Government is to increase ethanol production, so it may be reluctant to end the ban on commercial export of sugar in the near future.

Apart from this, the government is also planning to increase the purchase price of ethanol for oil marketing companies (OMCs).

It is worth noting that the ban on commercial export of sugar from India has been banned since June 1, 2023 and it was retained in the 2023-24 marketing season.

According to experts, the time limit of the ban can also be extended to the 2024-25 season. According to senior official sources, opening the export door of sugar does not seem possible in view of the current circumstances.

The first priority of the government is to meet the domestic demand and need of sugar. After this, the focus will be on increasing the production of ethanol.

This will require the use of huge quantities of sugarcane. In such a situation, there will not be such a huge surplus stock of sugar that a decision has to be taken to allow its export.

It is worth noting that for the marketing season of 2024-25, the government has allowed sugar mills to use sugarcane as per their wish and requirement for ethanol production.

This decision is an indication that the government is not in the mood to open the export of sugar while the indigenous industry is repeatedly seeking permission for export.

During the last few years, the production capacity of ethanol has been developed and expanded by many major sugar producing companies of India and the government can insist on increasing the use of this capacity.