Supplies improved on lower domestic consumption, higher production; prices ‘likely to remain stable and reasonable’
Supplies improved on lower domestic consumption, higher production; prices ‘likely to remain stable and reasonable’
The government has decided to raise the sugar export limit to 112 lakh metric tonnes from a 100-lakh-metric-tonne cap placed in May, citing an increase in production and a drop in consumption during the intervening months.
Sugar exports had touched the 100 lakh metric tonnes (LMT) quantitative cap on August 1, and the government said the additional exports of 12 LMT would help earn foreign exchange, reduce trade deficit and improve sugar mills’ liquidity by ₹3600 Crore.
Mills would then be able to clear farmers’ sugarcane dues that were at ₹9,700 crore as on August 4, the Ministry of Consumer Affairs, Food & Public Distribution said.
While sugarcane crushing season generally begins by the end of October, crushing is likely to commence by the first to third week of that month in the 2022-23 season due to sufficient availability of sugarcane in States such as Maharashtra, Karnataka and others, it noted.
“New sugar would start coming in the market from mid of October, 2022. Thus, opening stocks of 60 LMT in the ensuing sugar season would be sufficient to keep the domestic prices under control,” the Ministry concluded based on a review in the last week of July.
India’s sugar exports had grown sharply from 38 LMT in the sugar season of 2018-19 to 70 LMT in 2020-21.
“Local prices could spike during the period of September-November, 2022. The government is also concerned about food inflation,” it said to emphasise the need to curb exports at the time.
