Justifying the choice to cap sugar exports at 10 million tonnes this yr, Food Secretary Sudhanshu Pandey on Wednesday stated the federal government took a “timely and precautionary” measure to make sure an sufficient availability of the sweetener in the course of the competition season in October-November and to take care of value stability.
Although costs of sugar are “more stable” when in comparison with different commodities, the choice to curb sugar exports was taken to stop any undue spike in retail costs amid world scarcity of the commodity, he stated.
Pandey additionally talked about that India has emerged this yr because the world’s largest sugar producer, toppling Brazil which confronted scarcity of output this yr. India can also be the second largest sugar exporter on the earth.
On May 24, the federal government notified capping of sugar exports to 10 million tonnes within the ongoing 2021-22 advertising yr (October-September). Shipments will likely be allowed with particular permission between June 1 and October 31.
Addressing the media, the Food Secretary stated, “Sugar exports have risen sharply from about 50,000 tonnes in 2016-17 to 10 million tonnes this year. Please take it out of mind that it is any kind of curb.” The nation’s sugar exports this yr are the very best ever. Already 9 million tonnes of sugar have been contracted, out of which 7.5 million tonnes have been exported, he stated. Sugar exports stood at a report 7 million tonnes within the 2020-21 advertising yr.
The curbs needed to be imposed to make sure sufficient availability of sugar in the course of the competition season in October-November, which can also be the start of the brand new sugar advertising yr and when home demand of sugar is met from outdated shares, he stated.
About 6-6.2 million tonnes of sugar can be the closing inventory on the finish of the present advertising yr, simply the optimum stage to fulfill the home requirement in October-November, he stated.
On prime of it, the worldwide availability of sugar is much less because of scarcity in Brazil, he stated, and famous that given this backdrop the restrictions needed to be imposed to take care of home availability and value stability.
Pandey additionally stated the curbs on sugar exports was “timely and a precautionary step” as trade physique ISMA additionally feels that no more than 10 million tonnes of sugar might be exported this yr.
Currently, sugar costs each in wholesale and retail markets are extra steady when in comparison with different commodities. The restrictions on sugar exports will forestall hypothesis and undue value spike, he stated.
While ex-mill costs of sugar are ruling at Rs 32-33 per kg, the retail costs are hovering between Rs 33-44 per kg relying on the area, he added.
Sugar manufacturing at 35.5 million tonnes is highest on the earth this yr, after discounting diversion of three.5 million tonnes for ethanol. The availability is increased than the home requirement of 27.8 million tonnes.
Pandey additionally stated the diversion to ethanol making and exports have helped mills clear 85 per cent of the cane dues quantity of Rs 1,09,283 crore within the 2021-22 advertising yr. The pending cane dues of the final two years have narrowed down.
Source: www.financialexpress.com”