Around 70 lakh tonnes of sugar from Maharashtra from last season is yet in stock to be sold. The millers would face problems
if the sugar is not sold before starting the upcoming crushing season. However the problem can only be addressed by exporting raw sugar and granting export subsidy.
The Central government has taken some good decisions for welfare of the sugar sector. The sugar mills have recovered up to some extend following these decisions. Fixing of MSP of sugar helped mills from facing short margin however the decision was delayed which has affected Maharashtra.
In Maharashtra 107 lakh tonnes sugar was produced in the year 2017-18. 10 lakh tonne sugar from earlier season is still in stock. The domestic need of state is 35 to 40 lakh tonne. The remaining sugar is sold in other states like Gujarat, Madhya Pradesh, West Bengal and Himachal Pradesh. These are traditional markets of Maharashtra but UP has also entered in these markets. The transportation cost for sugar from UP is around Rs 300 lesser than Maharashtra hence these states have preferred UP for sugar. This has affected the sugar market from Maharashtra and total 70 lakh tonnes of sugar is still in stock.
Around 50 to 55 lakh tonne sugar would remain after selling buffer stock and export quota. This year crushing will begin from October and there are chances of excess sugar production along with that of the last season. Following this there is needed to sell the available stock before starting crushing season.
Situation of Export
75% of total sugar exported in market is raw sugar. 15% is refined sugar and remaining 10% is normal sugar. The sugar from India falls in this 10%. India’s share in world market is negligible.