Indian sugar industry apex body ISMA confident on performing well for sugar exports amid delayed announcement on policy

879

In a cabinet briefing today, Minister Prakash Javdekar announced 60 LMT quota for exports of sugar season 2020-2021 with an assistance of ₹3500 crores. In the previous sugar season 2019-2020, the Government provided an assistance of ₹10,448/MT.

Sharing views on the development, Mr. Abinash Verma – DG, ISMA said, “The sugar industry welcomes the much awaited decision on the sugar export programme for 2020-21 sugar season. At the current world prices and even if there is a small correction therein, sugar exports from India will be viable with the export subsidy of Rs.6000 per ton. The subsidy amount is lower than last year but considering that the world sugar prices are higher as compared to what they were at the same period in the last season, the industry is confident to perform well again in 2020-21. Even though 2 ½ months of the current season is over, considering that several large importing countries have been enquiring about Indian sugar and also considering that the drop in sugar production from Thailand gives an opportunity for India to export to their traditional markets like Indonesia, Malaysia etc., the Indian sugar industry should be able to fulfill the target of 6 million tons of sugar exports in 2020-21.This will help reduce the sugar stocks and from an opening balance of 10.7 million tons as on first October 2020, we should be able to reduce carry forward into the next season on 1st October 2021, to 9.6 million tons. The 6 million tons would give the industry Rs. 18,000 crore from exports and subsidy, which will help reduce cane price arrears. The other good news of budgetary allocation of Rs. 5,300 crore for past subsidies will further help the sugar mills to clear their cane price arrears.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here