(MENAFN- Trend News Agency)
The government has allowed exports of one million tonne of sugar
since its notification on May 24 to regulate outbound shipments to
keep local supplies steady, a senior official told FE.
Sugar exports, however, will likely drop to about 7-8 million
tonne in the next marketing year starting October, from 10 million
tonne in 2021-22, said the official. Greater diversion of cane
juice to produce ethanol, robust domestic demand and the need to
replenish the somewhat depleted year-ending inventory are expected
to keep a lid on the exportable surplus of sugar in 2022-23.
However, the food ministry will decide whether to impose a cap on
sugar exports in 2022-23 in one-two months, once a precise
production estimate for the next year is firmed up, he added.
India had shipped out only 620,000 tonne of sugar in 2017-18,
3.8 million tonne in 2018-19 and 5.96 million tonne in 2019-20.
Last year, against the target of 6 million tonne, about 7 million
tonne of sugar was exported.
While announcing an export cap of 10 million tonne for 2021-22,
the food ministry had said late last month that about 9 million
tonne had been contracted for outbound shipments until then. Of
this, about 8.2 million tonne was dispatched from sugar mills for
exports and a record 7.8 million tonne had been physically shipped
out.
Diversion towards ethanol could rise to about 4.5-5 million
tonne next year, against 3.5 million tonne in 2021-22, said the
official. The government has estimated that year-ending sugar
stocks will likely drop to just about 6.5 million tonne in 2021-22
(which is enough for the consumption for about three months), down
from 8.9 million tonne a year before, according to the source.
MENAFN30062022000187011040ID1104458453
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.