Sugar industry body ISMA has urged the government to allow export of 20 lakh tonnes of sugar in the current marketing year ending in September as the shipment of surplus sweetener will increase liquidity of millers so that they can supply sugarcane to farmers on time. Will be able to pay. According to PTI news, for the current 2023-24 marketing year (October-September), the government has not allowed sugar exports to boost domestic supply and control retail prices.
Production by end of April 2024
Sugar mills were allowed to export about 60 lakh tonnes of sugar in the last marketing year. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said in a statement on Monday that production is set to reach about 314 lakh tonnes by the end of April 2024. With additional production of 5-6 lakh tonnes expected from mills in Karnataka and Tamil Nadu, final net sugar production in the 2023-24 marketing year (October-September) is estimated to be close to 320 lakh tonnes.
Causes additional costs for mill owners
Considering the opening stock of about 56 lakh tonnes as of October 1, 2023, and estimated domestic consumption of 285 lakh tonnes for the season, ISMA has estimated a significantly higher closing stock of 91 lakh tonnes as of September 30, 2024. This estimate, which is 36 lakh tonnes more than the standard stock of 55 lakh tonnes, could potentially lead to additional costs for millers due to idle inventory and carrying costs.”
Moderate crushing season expected in 2024-25
The association also expects a moderate crushing season in 2024-25 due to several factors, including early announcement of increase in fair and remunerative price (FRP) for sugarcane, favorable pre-monsoon rainfall and forecasts indicating an above normal monsoon. Are included. These factors are expected to drive the stock higher in the coming year. In view of this estimate, ISMA urged the government to consider allowing export of 20 lakh tonnes of sugar in the current season.
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