The central government has approved an additional 1.2 million tonnes (MT) of sugar exports for the current season in expectation of higher domestic production in the next season. This approval is in addition to around 10 MT of sugar already exported in the current season (October 2021-September 2022).
The projected sugar exports in excess of 11 MT are expected to be the highest ever sugar shipment in a season. A committee consisting of a group of ministers recently approved the extra quota of sugar exports. Food ministry sources told that despite the approval of an additional quantity of sugar exports, the opening stocks for the 2022-23 season would be in the range of 6 – 6.5 MT on October 1.
The country’s sugar production is estimated at 36 MT in the 2021-22 season. Sugar has been exported to countries including Nepal, Bangladesh, Sri Lanka, United Arab Emirates, Afghanistan, Indonesia and Somalia, and others. In May, the government imposed restrictions on sugar exports from June 1, a move aimed at ensuring domestic availability and control the price rise.
Stating that it is time to review the current sugar export policy for next year since the current global prices are strong, a recent communication by Aditya Jhunjhunwala, president, ISMA to commerce minister Piyush Goyal said advance exports contracts would result in better cash flows and payment to farmers in the next season. The government is still considering the issue of fixing sugar export volume for the next season.
