Amid favorable estimates of sugar production in the country, Union Minister of State for Skill Development and Entrepreneurship, Jayant Chaudhary, has urged the Central Government to permit sugar exports. He highlighted that an increase in sugar production could lead to a drop in domestic prices, adversely affecting the sugar market. In this context, he has written to Consumer Affairs, Food and Public Distribution Minister Prahlad Joshi, advocating for the export of 20 lakh tonnes of sugar.
In his letter to Prahlad Joshi, Chaudhary referenced recent preliminary estimates from the Indian Sugar and Bio Energy Manufacturers Association (ISMA), which project around 333 lakh tonnes of sugar production for the 2024-25 season. Including an opening stock of 90 lakh tonnes as of October 1, 2024, the total sugar availability is expected to be approximately 423 lakh tonnes. With domestic requirements estimated at 290 lakh tonnes, there will be a surplus of about 133 lakh tonnes, significantly higher than the standard sugar stock of 55 lakh tonnes.
Chaudhary pointed out that excess sugar availability might cause a decline in domestic sugar prices, negatively impacting the market. Additionally, surplus inventory could impose extra carrying costs on sugar mills. He emphasized that allowing sugar exports at this juncture would provide a financial buffer for the industry, aiding in operational costs and the settlement of outstanding cane payments to farmers.
Chaudhary also noted that sugar exports would help the country earn valuable foreign exchange and stabilize the domestic market. He urged the government to consider permitting the export of at least 20 lakh tonnes of sugar in the current season, ensuring that this export volume would not hinder the domestic market's needs.
Call to Lift Sugar Export Ban
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) has echoed this request, urging the central government to lift the sugar export ban, citing sufficient sugar availability for both domestic consumption and ethanol production. ISMA Director General, Deepak Ballani, mentioned that the current monsoon season has brought abundant rainfall, which will boost sugar production in the 2025-26 marketing season. This increased production can also support ethanol manufacturing.
Industry facing problems in exports
Ballani added that if the government promptly allows sugar exports, it would help the industry reduce storage and maintenance costs, as well as lower the interest burden. He noted that the government has not yet approved sugar exports for the 2023-24 season, causing export challenges for the industry. ISMA believes that in the next season, sugar exports will be feasible alongside meeting domestic demand, benefiting the entire industry.