Government allows export of 60 lakh tonne in FY 23

  • India Infoline News Service |
  • 07 Nov, 2022 |
  • 8:28 AM
As another measure to balance the price stability of sugar in the country and the financial positions of sugar mills in the country, based on initial estimates of sugarcane production, Government of India has allowed export of sugar upto 60 LMT during the sugar season 2022-23.

DGFT has already notified to extend the inclusion of sugar exports under ‘Restricted’ category up to October 31, 2023.

The Central Government has prioritized availability of about 275 Lakh Metric Tonnes (LMT) sugar for domestic consumption, about 50 LMT sugar for diversion to ethanol production and to have closing balance of about 60 LMT as on September 30, 2023. Balance quantity of sugar produced by sugar mills in the country would be allowed for exports.

Since at the beginning of sugar season 2022-23, initial estimates of sugarcane production are available, it has been decided to allow export of 60 LMT sugar. The sugarcane production in the country will be reviewed periodically and based on the latest available estimates, quantity of sugar exports to be allowed could be reconsidered.

During SS 2021-22, India exported 110 LMT sugar and became second largest exporter of sugar in the world and earned about Rs40,000 crore worth of foreign exchange for the country. Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers.

As on October 31, 2022, more than 96% of cane dues of farmers for SS 2021-22 were already cleared despite record procurement of sugarcane of more than 1.18 lakh crore rupees.

In the sugar export policy for SS 2022-23, Government has announced sugar mill wise export quota for all sugar mills in the country with an objective system based on average production of sugar mills in last three years and average sugar production of the country in last 3 years.

Further, to expedite the sugar exports and to ensure flexibility to sugar mills in execution of the export quota, mills may decide to surrender the quota partially or fully within 60 days of the date of issue of order OR they can swap the export quota with domestic quota within 60 days. This system would ensure lesser burden on logistics system of the country as swapping system would reduce the need to transport the sugar from distant locations to the ports for exports and movement of sugar across the length and breadth of the country for domestic consumption.

Further, swapping would also ensure liquidation of sugar stocks of all mills as mills which are not able to export could swap their export quota with domestic quota of sugar mills which are able to export more, mainly due to their vicinity to ports.

At the end of Sugar Season 2022-23, it is expected that most of sugar mills will be able to sell their production either in domestic market or in international market through exports and will clear the cane dues of farmers in time. Thus, the policy has created a WIN WIN situation for sugar mills in the country.

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