The Central Government has directed sugar mills across the country to export quickly to make an early payment to farmers.
In a statement issued on Sunday, the Ministry of Consumer Affairs, Food, and Public Distribution stated, “At the end of the sugar season of 2022–2023, 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. Thus, the policy has created a win-win situation for sugar mills in the country.” The statement comes after the government allowed the export of 6 million metric tonnes of sugar on a quota basis during the sugar season (SS) 2022–23 as another measure to balance the price stability of sugar in the country and the financial positions of sugar mills in the country, based on initial estimates of sugarcane production.
“The Directorate General of Foreign Trade (DGFT) has already notified to extend the inclusion of sugar exports under the restricted category up to October 31, 2023,” the ministry said.
According to the official information given by the Department of Food and Public Distribution (DFPD), the Central Government has prioritised the availability of about 275 lakh metric tonnes (LMT) of sugar for domestic consumption, about 50 LMT of sugar for diversion to ethanol production and a closing balance of about 60 LMT as on September 30, 2023.
“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,” it said.
The ministry said that the sugarcane production in the country will be reviewed periodically, and based on the latest available estimates, the quantity of sugar exports to be allowed could be reconsidered.
During SS 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 crore worth of foreign exchange for the country.
“Timely payment and the low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers,” the ministry added.
As on October 31, 2022, more than 96 percent of cane dues of farmers for SS 2021–22 were already cleared, despite record procurement of sugarcane of more than 1.18 lakh crore rupees.
It is worth mentioning that in the sugar export policy for SS 2022–23, the government has announced sugar mill wise export quotas for all sugar mills in the country with an objective system based on the average production of sugar mills in the last three years.
