The restriction on sugar exports is cautionary in nature, keeping an eye on global shortages of the commodity, officials have said. They also said retail prices in the country remain stable, and the decision has been taken to keep it that way.
The government had late on Tuesday announced restrictions on sugar exports from June 1, till October. This is despite the fact that India is the largest producer of sugar in the current season, and will be the second-largest exporter despite the restrictions, according to data made public by officials on May 25.
"Sugar exports have doubled since 2016-17. Exports are expected to reach 10 million (100 lakh) tonnes in the current financial year, up from 7 million (70 lakh) tonnes in FY22," Food Secretary Sudhanshu Pandey told the press in a briefing.
Lean period
Officials said that atleast 60-62 lakh metric tonnes of sugar should be left in India by October. This is generally the time when crushing begins, while new sugar comes by January. "For this lean period, every country has to ensure that there should be ample domestic supply," Pandey said.
"It is an agricultural commodity, with limited production and listed availability. It is clearly seen that exports are already highest enough. So, we have just put in place a monitoring mechanism, and will still allow exports upto 10 million tonnes," Pandey said. He stressed that since there is a global shortage, the requirement for ensuring adequate domestic availability also has to be taken into account.
About 91 lakh metric tonnes of sugar have already been contracted by exporters, while up to 100 lakh metric tonnes are expected to soon be contracted.
Officials also said the diversion of sugar towards ethanol production is expected to hit 35 lakh tonnes in 2021-22. It is expected to go upto 45 lakh tonne in the current year.
Upto 84.6 percent of sugarcane arrears have also been paid to farmers in FY22.
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