ISMA urges government to allow 10 lakh tons of sugar exports amidst surplus production

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has appealed to the Government to allow the export of 10 lakh tons of sugar during the ongoing season. This request in a letter addressed to the Food Secretary at DFPD dated March 28, 2024, comes in response to recent projections indicating a surplus in sugar production, primarily driven by favourable sugarcane yields in Maharashtra and Karnataka.

The Association has revised estimates, suggesting that gross sugar production (without considering diversion) is anticipated to reach 340 lakh tons, up from the initial forecast of 330.5 lakh tons in January 2024. Factoring in an estimated diversion of 20 lakh tons of sugar towards ethanol, along with excess stocks of B heavy/ethanol available with distillers, the net projected sugar production for the current season stands at 320 lakh tons.

With an opening stock of approximately 56 lakh tons as of October 1st, 2023, and a domestic consumption forecast of 285 lakh tons for the season, ISMA expects a substantial closing stock of 91 lakh tons as of September 30th, 2024.

The surplus, coupled with the recent Government announcement of a significant increase of Rs. 25 per quintal in the Fair and Remunerative Price (FRP) of sugarcane for 2024-25, is expected to incentivise greater sugarcane cultivation across different regions, ensuring a robust supply of sugarcane. Additionally, weather agencies have predicted the weakening of El Nino conditions and anticipate a normal to above-normal South-West monsoon in India for 2024, leading to a moderate crushing season in 2024-25 and ample sugar availability.

In light of these developments, ISMA has urged the Government to consider permitting the export of 10 lakh tons of sugar in the current season, which would not only guarantee a comfortable stock for domestic consumption and sustain the Ethanol Blending Program (EBP) but also contribute to maintaining the financial liquidity of sugar mills, facilitating timely payments to farmers.



Please enter your comment!
Please enter your name here