Sugar mills have urged the federal government to permit exports of 8 million tonne (MT) of the sweetener underneath the open common licence (OGL) within the subsequent season which commences on October 1. This, in accordance with the Indian Sugar Mills Association (Isma), will assist the sugar mills enter into future exports contracts nicely upfront previous to graduation of the season.
Stating that it’s time to assessment the present sugar export coverage for subsequent yr for the reason that present world costs are agency, a current communication by Aditya Jhunjhunwala, president, Isma to commerce minister Piyush Goyal mentioned advance exports contracts would end in higher money flows and cost to farmers within the subsequent season.
Sources mentioned the federal government continues to be contemplating the difficulty of fixing sugar exports quantity for the following season.
Isma has additionally urged the federal government to permit sugar mills to export a further 1 MT within the present season in order that mills can fulfil their export commitments.
Last month, the federal government had imposed restrictions on sugar exports from June 1, a transfer geared toward making certain home availability and curbing value rise. This restriction on exports comes after a file cargo of sugar this season (2021-22).
According to a meals ministry assertion final month, whereas the nation’s sugar manufacturing in 2021-22 season is estimated at 35.5 MT after discounting 3.5 MT used for ethanol manufacturing. Out of 9 MT of sugar exports contracted, round 8.2 MT has been shipped. However, Isma has acknowledged sugar mills had utilized for extra 1.7 MT of exports, out of which orders have been issued for under 800,000 tonne.
“Almost 600,000-700,000 tonne 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,” Isma has acknowledged.
Stating that there is no such thing as a risk of spike in home sugar costs, Jhunjhunwala mentioned that regardless of a file exports of greater than 8.6 MT until finish of May 2022, the all-India ex-mill common home sugar costs have hovered round Rs 33-35 per kg.
Meanwhile, the directorate of sugar and greens oils underneath the meals ministry has requested exporters to furnish particulars about these sugar consignments which have been lifted from mills previous to May 31, 2022 and had not been shipped.
In case of these consignments for which export launch orders have been issued, exporters have to tell to the meals ministry by Thursday. In sugar seasons 2017-18, 2018-19 and 2019-20, about 600,000 tonne, 3.8 MT and 5.9 MT of sugar was exported. The exports stood at 7 MT in 2020-021.
Source: www.financialexpress.com”