Govt approved 1.2 mt more sugar exports: The Union government has approved additional sugar exports worth 1.2 million tonnes (mt) beginning on 1 August this will help sugarcane growers as well as sugar producers. It will also help generate more foreign exchange and reduce the trade deficit according to the government.
The government had put a halt on sugar exports of r 10 million tonnes from the 1st of June to improve local demand for sugar production and reduce higher prices. However, the increase in sugar stock due to the increased production as well as the weakening of sugar demand on the domestic market caused authorities to reconsider the policy.
“The position was reviewed by the Government in last week of July 2022 and it has been decided to allow export of sugar up to 112 lmt (lakh metric tonnes) in the interest of sugarcane farmers and sugar industry,” the ministry of commerce and industry ministry announced in a press release Friday. It stated that after the ease of export restrictions, the sugar reserves that were closed at 6 million tonnes are expected to be maintained.
In addition, with the sugarcane crushing program in Maharashtra, Karnataka, and other states due to begin on October 1, there will be plenty of sugar in the country at an affordable cost. Prices for retail are expected to remain in a stable range.
Sugarcane crushing usually starts at the close of October or the early week of November but due to the ample supply of sugarcane, it will likely begin between the third and first week of October, and the new sugar will begin coming into the market around the middle of October, the government stated. It said that exporting 10 tonnes of sugar up to 1 August has helped increase the financial liquidity at sugar mills, by more than Rs33,000 crores, which allowed farmers to pay their dues.