Sugar Exports to Proceed as Government Rejects Calls for Ban

Despite a decline in domestic production of the commodity, the Indian government will not be required to impose a ban on sugar exports. This is due to the fact that the 61 lakh tonnes (lt) export quota is nearly exhausted and there is no scope for additional exports, according to sources.

"Sugar exports for the season were capped at 61 lt. The quota has been exhausted more or less and there is no possibility of more exports. Therefore, there is no need for an export ban, according to a representative monitoring the situation.

The Indian Sugar Mill Association (ISMA), an industry body of private sugar companies last month explained the reduction in sugar production for the present season i.e., October 2022 to September 2023 to 32.8 million tonnes (mt) from the prior 34 mt after taking into account the fall in Karnataka and Maharashtra output and marginal rise in Uttar Pradesh.

No scarcity is anticipated in the local markets due to the estimate of 27.5 mt domestic consumption. According to the sources, the government is monitoring the prices and supply because sugar is a delicate commodity.

According to sources in the industry, the sugar mills have already shipped more than 60.5 lt above the allotted quota. Since it was permitted, they claimed that between 57 and 58 lt have already been exported from the nation.

An industry official stated, "There is no expectation for any further allocation after the production estimate was reduced." According to ISMA, the nation's sugar production has already decreased 5.4% to 31.1 mt as of April 15 for the 2022–23 sugar session, which includes October and September, compared to 32.87 mt in the comparable period last year.

Meanwhile, the Food Ministry is fine-tuning production estimates to make them more accurate in the future, after the assessment in Maharashtra went completely off the mark.

A source at the ministry said that close accurate estimates help the government formulate policies accordingly. As 6 mt of export was allowed at the beginning, fortunately, the fall in production is not that huge otherwise there could have been a problem with domestic availability.