Delay in announcement of sugar export policy likely to impact India in global sugar market

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With the commencement of the new sugar season, the Indian sugar industry has been eagerly awaiting the announcement of the export policy which has been delayed. According to reports the Government is yet to pay a substantial number of dues against the assistance of exports for the sugar season 2019-2020. Sugar millers are on the edge and exporters have been left anxious on demand from importing countries.

In talks with ChiniMandi News, a veteran who does not want his name to be mentioned shared his views on delay on announcement of the export policy. He said “The announcement on export policy appears to be delayed. Probably the Government wants to be sure of the funds that will be required. Delay will definitely impact the quantity that we can put in the world market and consequently the ability of the mills to pay the farmers. Domestic prices have started to fall and in some states we are even witnessing mills selling below Minimum Selling Price (MSP) even before the start of the sugar season. Low domestic prices will definitely increase cane arrears.”

“I believe that the Government would be looking at a similar program to that of the last season. For one it worked well and almost all the targeted quantity was exported. Disbursements are slow and this is often a challenge but should get sorted out. Early exporters have got their dues in major part and I expect them to lead the export program again. Storage is a major challenge and with a large crop expected it will help to reduce inventories. Payments for this year’s assistance will have to be made next year and I expect things to improve by then.” He further added.

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