Anticipating a bumper manufacturing of sugar within the coming season (2022-23), business physique Indian Sugar Mills Association (ISMA) on Thursday wrote to Piyush Goyal, minister of commerce and Industry, Food and Public Distribution, urging him to permit exports of 8 million tonne of sugar beneath open normal licence (OGL) through the subsequent sugar season beginning October 1.
In the letter written to the minister, a duplicate of which is with FE, ISMA president Aditya Jhunjhunwala stated a direct announcement of subsequent yr’s sugar export coverage will assist the sugar mills to enter into future contracts at higher costs.
Reiterating that that is the fitting time to assessment the present sugar export coverage for subsequent yr since as the present world costs are agency, the letter stated mills can plan their manufacturing for subsequent season upfront and added this method will give a good likelihood and equal alternative to all of the mills to take part in exports.
On June 10, ISMA had written to the meals secretary too, requesting an early announcement of subsequent yr’s sugar export coverage.
According to ISMA, the realm beneath sugarcane cultivation is predicted to be 2% increased than the present season. Backed by a superb monsoon, as predicted by the IMD, sugar manufacturing can also be prone to be increased than the present season’s manufacturing of 39.4 MT. “Even after a higher diversion of sugar towards production of ethanol next year, there will still be sufficient stock available for exports,” ISMA stated.
Speaking to FE on situation of anonymity, a sugar miller stated fears of decrease availability are behind the Centre’s dilly-dallying on the problem of asserting sugar export coverage for subsequent yr. “However, there fears are unfounded. We are expecting a bumper production next year too”, he stated.
In a separate letter to the minister, ISMA additionally requested the minister to permit sugar mills to export a further 10 lakh tonne within the ongoing 2021-22 season so mills can fulfil their export commitments within the present season itself and there’s no repercussion within the subsequent season.
According to ISMA, sugar mills had utilized for 1.7 MT of export, of which orders have been issued for under 0.8 MT. “Planning for production of raw sugar for export is done in advance, based on the export contracts. Almost 0.6-0.7 MT of raw sugar is surplus and would lie idle with the mills or at ports if it is not exported. The mills now have no option to process it nor sell in the market. Export is the only viable option in the current situation,” it stated.
Allaying the Centre’s fears {that a} shortfall of sugar could result in a spike in home sugar costs, ISMA president stated that even after report exports of about 86 lakh tonne upto May 2022, the all-India ex-mill common home sugar costs have hovered round Rs 33-35 per kg.
“Therefore, there is no reason to believe that the sugar export of this additional 10 lakh tonnes in the current season would affect the domestic market,” Jhunjhunwala stated.
Source: www.financialexpress.com”