To balance the price stability of sugar and the financial positions of sugar mills across the country, the Government of India has allowed the export of sugar upto 60 LMT during the Sugar Season (SS) 2022-23.
The Central Government has prioritized the availability of about 275 Lakh Metric Tonnes (LMT) of sugar for domestic consumption, about 50 LMT sugar for diversion to ethanol production, and has a closing balance of about 60 LMT as of 30.09.2023.
According to the Ministry of Consumer Affairs, Food, and Public Distribution, “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 the export of 60 LMT sugar.”
The sugarcane production in the country will be reviewed periodically and based on the latest available estimates, the number of sugar exports to be allowed could be reconsidered stated the ministry.
During 2021-22, India exported 110 LMT of sugar and became the second largest exporter of sugar in the world, and earned about Rs. 40,000 crores 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.
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 the average production of sugar mills in the last three years and the average sugar production of the country in the last 3 years.
At the end of Sugar Season 2022-23, it is expected that most of the sugar mills will be able to sell their products either in the domestic market or in the international market through exports and will clear the cane dues of farmers in time.