Closing balance of sugar stocks expected to be lesser than previous season

New Delhi: The sugar stocks in the country for the ongoing season ending September is likely to be lower by 25 lakh tonnes compared to last season, states the Indian Sugar Mills Association (ISMA).

As on June 15, 2021, sugar mills in the country have produced 306.65 lakh tonnes sugar. This is 35.54 lakh tonnes higher than 271.11 lakh tonnes produced at the same time last year.

ISMA stated that there is a misunderstanding in the market that the sugar demand has fallen the last few months owing to the pandemic but the total sugar sales by mills in May were 22.35 lakh tonnes as against the domestic sales quota of 22 lakh tonnes.

As per information furnished by mills and estimations made by ISMA, total sales in the current season upto May, 2021 are estimated at 174.96 lakh tonnes against domestic sales quota of 169 lakh tonnes given by the Government. Last year, during the same period sugar sales were estimated at 166.40 lakh tonnes as against sales quota of 161 lakh tonnes. This would mean that sales in the current year upto May,2021 are 8.56 lakh tonnes higher or about 5% higher than the last year corresponding period.

As per ISMA, in addition to higher domestic sales of 8 to 10 lakh tonnes in the current year till the end of September, 2021, over last season, sugar exports in the current year is expected to be around 70 lakh tonnes, which gives the industry the confidence that the closing balance of September, 2021 will be about 20 to 25 lakh tonnes less than the closing balance of last season.

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