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Govt to relax sugar export quota for 2021-22; allow 1.2 mn ton more shipments

Govt to relax sugar export quota for 2021-22; allow 1.2 mn ton more shipments

In late May, the Centre had decided to cap sugar exports at 10 million tonnes in the 2021-22 marketing year (October-September) to maintain domestic availability and price stability.

Sugar exports stood at 7 million tonnes in the 2020-21 marketing year, up from 5.96 million tonnes in the previous year. Sugar exports stood at 7 million tonnes in the 2020-21 marketing year, up from 5.96 million tonnes in the previous year.

The government will relax the quantitative restriction of 10 million tonnes on sugar exports and will allow shipments of an additional 1.2 million tonnes in the current marketing year ending September.

In late May, the Centre had decided to cap sugar exports at 10 million tonnes in the 2021-22 marketing year (October-September) to maintain domestic availability and price stability.

Sugar mills have already exported nearly 10 million tonnes so far -- an all-time high -- in the current marketing year. The industry has been demanding that the export cap should be enhanced.

On the sidelines of an event here, Food Secretary Sudhanshu Pandey said the government will allow a further 1.2 million tonnes of sugar exports.

A notification in this regard will be issued soon, he added.

Sugar exports stood at 7 million tonnes in the 2020-21 marketing year, up from 5.96 million tonnes in the previous year.

"About 100 lakh tonnes (10 million tonnes) of sugar has been exported till August 1, 2022, in the current sugar season 2021-22 and exports likely to touch 112 lakh tonnes (11.2 million tonnes)," the food ministry had said in a statement earlier this week.

Industry body Indian Sugar Mills Association (ISMA) has estimated that India's sugar production could fall slightly to 35.5 million tonnes in the 2022-23 marketing year, starting October, due to the diversion of sugarcane towards ethanol manufacturing.

Sugar output is estimated at 36 million tonnes in the current marketing year ending September.

Before considering diversion towards ethanol, net sugar production is estimated to be higher at 39.99 million tonnes in 2022-23 against 39.4 million tonnes in the current 2021-22 marketing year.

ISMA estimates that the diversion of cane juice and B-molasses to ethanol will reduce sugar production by about 4.5 million tonnes in the next 2022-23 marketing year.

In the current 2021-22 marketing year, about 3.4 million tonnes of diversion has been estimated.

The annual domestic demand is seen at around 27.5 million tonnes in 2022-23, which will leave a surplus of about 8 million tonnes for exports.