UP sugar industry urges Center to allow export

The Uttar Pradesh sugar industry wants the Union government to allow exports of 80 lakh MT of sugar under Open General License (OGL) in the next season (2022-23) starting October 1. The industry represented by the Indian Sugar Mills Association (ISMA) has written to Minister of Commerce and Industry, Food and Public Distribution Piyush Goyal in this regard. ISMA Chairman Aditya Jhunjhunwala said an immediate announcement of next year’s sugar export policy would help sugar mills secure future deals at better prices.

Reiterating that now is a good time to review the current sugar export policy for next year since current world prices are firm, Jhunjhunwala said factories can plan their production for the next season in advance and that this system would provide a fair chance and equal opportunity for all factories to participate in exports.

According to ISMA, the area under sugar cane should be 2% higher than in the current season. Supported by a good monsoon, as predicted by IMD, sugar production is also expected to be higher than the current season production of 39.4 MT. “Even after a greater diversion of sugar into ethanol production next year, there will still be sufficient stock available for export,” ISMA said.

ISMA has also urged the Union Government to allow the sugar industry to export an additional 10 lakh tonnes in the current 2021-22 season so that factories can fulfill their export commitments in the season. ongoing itself and that there are no repercussions in the next season. According to ISMA, the sugar industry had requested 17 lakh MT for export, of which orders were only issued for 80,000 MT. “The planning of raw sugar production for export is done in advance, based on export contracts. About 60,000 to 70,000 tons of raw sugar are surplus and will sit unused in mills or in ports if not exported. The factories no longer have the possibility of transforming it or selling it on the market. Export is the only viable option in the current situation,” ISMA said.

Allaying the Centre’s fears that a shortage of sugar could lead to a spike in domestic sugar prices, the ISMA Chairman said that even after record exports of around 86 lakh MT through May 2022, domestic prices Average ex-factory sugar from all over India have hovered around Rs 33-35 per kg.

“There is no reason to believe that the export of sugar of these additional 10 lakh tonnes in the current season will affect the domestic market,” he added.

Rachel J. Bradford