ISMA requests permission to export 8 MT of sugar in marketing year 2022-23

Sugar industry body ISMA has demanded that the government allow exports of 80 lakh tonnes of the sweetener in the 2022-23 marketing year from October due to excess production.

Indian Sugar Mills Association (ISMA) Chairman Aditya Jhunjhunwala has written a letter to Minister of Food and Consumer Affairs Piyush Goyal in this regard.

In the current marketing year 2021-22 ending in September, the government has allowed sugar exports of 112 lakh tons and factories are expected to ship the full quantities.

In May, the government imposed restrictions on the export of sugar above 100 lakh tonnes, but then allowed an additional 12 lakh tonnes of shipments, bringing the total to 112 lakh tonnes for 2021-2022.

The sugar marketing year or season runs from October to September.

“We would like to request the government to allow 80 lakh tons of exports for 2022-23 SS (Sugar Season)…,” the ISMA chairman said in the letter.

According to a preliminary estimate, Jhunjhunwala said net sugar production, not taking into account the diversion of sugar for ethanol production, is expected to increase to around 400 lakh tonnes in 2022-23, from 394 lakh tonnes for the marketing year. In progress.

However, he said 45 lakh tons of sugar are expected to be diverted to ethanol in the 2022-23 marketing year compared to 34 lakh tons in the current marketing year.

This means that the actual sugar production in 2022-2023 would be 355 lakh tonnes, the ISMA chairman said.

“Therefore, after considering a domestic sugar consumption of 275 lakh tons in the coming season (2022-23), it becomes imperative to export at least 80 lakh tons of surplus sugar out of the country in order to maintain a balance sheet. optimal sugar bowl in the country,” said Jhunjhunwala.

Exports of surplus sugar would also help maintain domestic sugar prices, which, in turn, would strengthen the liquidity position of mills, allowing them to pay cane growers on time.

The President of ISMA mentioned that the milling operations of the sugarcane of the 2022-23 marketing year are expected to start from the first week of October due to the huge availability of the cane.

Jhunjhunwala urged the government to announce the export policy for the 2022-23 marketing year at the earliest so that factories can secure future contracts and also plan their production in advance.

India’s sugar exports stood at 70 lakh tons in the 2020-21 marketing year, 59 lakh tons in 2019-20 and 38 lakh tons in 2018-19.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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