The authorities on Wednesday mentioned that the choice to cap sugar exports within the 2021-22 season (October-September) at 10 million tonne (MT) is to make sure enough home availability of sweetener and forestall undue spike in costs.
Food secretary Sudhanshu Pandey on Wednesday mentioned whereas home costs of sugar are extra steady in comparison with different commodities, the choice to curb sugar exports was taken to forestall any undue spike in retail costs amid world scarcity of the commodity. India has emerged because the world’s largest sugar producer this 12 months as output in Brazil has declined.
While notifying the capping of sugar exports, the federal government mentioned shipments might be allowed with particular permission between June 1 and October 31. Sugar mills and exporters have to take approvals within the type of export launch orders from the directorate of sugar, meals ministry.
Around 9 MT of sugar have been contracted up to now, out of which 7.5 MT have been exported. In the 2020-21 season, India exported 7 MT of sugar. “Global situation reflects a shortage of sugar, especially due to lower production in Brazil. This may trigger the demand globally and so as to safeguard domestic availability and interests, the decision to cap sugar exports was made,” the meals ministry mentioned in a press release.
The curb on exports is anticipated to make sure enough availability of sugar throughout the competition season in October-November. While the sugar season begins from October, the sweetner enters the market after crushing by firms solely by November.
“About 6-6.2 MT of sugar would be the closing stock at the end of the current marketing year, just the optimum level to meet the domestic requirement in October-November,” Pandey mentioned. On October 1, 2021, the opening inventory of sugar was round 8 MT.
While ex-mill costs of sugar are ruling at Rs 32-33 per kg, the retail costs are hovering between Rs 33 and Rs 44 per kg relying on the area, in response to the meals ministry.
India’s sugar manufacturing is estimated at 35.5 MT for 2021-22 season. After making an allowance for the diversion of three.5 MT for ethanol, the provision is larger than the annual home requirement of 27.8 MT.
The meals ministry acknowledged that greater than 99.6% of cane arrears of the final sugar season have already been paid and greater than 84% of cane dues of the present sugar season have additionally been cleared. It acknowledged that the variety of operational sugar mills has additionally elevated to 522 within the present season.
Source: www.financialexpress.com”