Centre to Increase Sugar Export Quota in March, says Food Secretary

The food ministry has approved 60 lakh tonnes of sugar exports for the current marketing year 2022-23, which is expected to see a drop in sugar production. The previous year, India exported a record 110 lakh tonnes of sugar. 

"We have not yet made a decision. We are closely monitoring production and will make a decision in March depending on the final figures of anticipated production."

"When asked if the government would increase the sugar export quota, Chopra told reporters here that it would. He stated that bad weather in some producing states is expected to reduce sugar production in the 2022-23 marketing year. According to the Indian Sugar Mills Association (ISMA), sugar production is expected to fall 5% in the current marketing year to 340 lakh tonnes as more sugarcane juice is diverted for ethanol production. In the 2021-22 marketing year, sugar production was 358 lakh tonnes.

An estimated 45 lakh tonnes of sweetener will be diverted to ethanol production. Sugarcane juice and B-molasses are being diverted to the ethanol manufacturing process. Maharashtra's actual sugar production is expected to fall to 121 lakh tonnes in 2022-23, down from 137 lakh tonnes the previous year.

Uttar Pradesh will see a marginal decrease from 102 lakh tonnes to 101 lakh tonnes, while Karnataka may see a decrease from 60 lakh tonnes to 56 lakh tonnes. ISMA reported that the country's sugar production increased by 3.42 percent to 193.5 lakh tonnes in the first four months of 2022-23. Mills have contracted to export nearly the entire 60 lakh tonnes of sugar allowed by the government.