Govt unlikely to allow sugar exports next season
Live MintThe department of food and public distribution is unlikely to allocate quota to sugar mills for export or allow Indian mills to export sugar in 2023-24 to ensure domestic supply and keep prices in check. This comes in the backdrop of India’s sugar production in the ongoing season dipping to 32.4 million tonnes from the initial estimates of 36.5 mt, in turn driving the government’s decision of retaining export restrictions on the sweetener. “There will be no deliberations on sugar exports until we receive the advance estimates of sugar production or initial cane assessment for the next season.” The government comes up with its first advance estimates of foodgrains production and output of commercial crops including cotton and sugarcane in September. The US Department of Agriculture recently came up with world sugar production estimates for the next season, where it said that India’s sugar production in 2023-24 is estimated to be 4 mt higher than the current season at 36 mt because of higher area under sugarcane and yields. However, no additional export quota will be allocated to Indian sugar mills.” Additionally, the department is focusing on achieving 20% ethanol blending in petrol by 2030, wherein as part of the plan, it will divert 5 mt sugar to ethanol production next season.