Agri Picks Report July 04, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

The Indian Sugar and Bio-Energy Manufacturers Association has reiterated its earlier forecast of a sugar surplus of up to 3.6 mln tn for the 2023-24 (Oct-Sep) sugar season and has urged the government to allow exports, according to a release today. With an opening stock of approximately 5.6 mln tn in October in addition to forecasted domestic consumption of nearly 28.5 mln tn for the season, it will result in significantly higher closing stock of 9.1 mln tn by the end of September, it said. In light of these projections, the association has again urged the government tore-consider permitting the export of surplus sugar after due consideration of domestic demand and supply. The domestic consumption and availability situation is more than comfortable and the Ethanol Blending Programme can also be very well managed, according to the Association. The estimated surplus of 3.6 mln tn above the normative stock of 5.5 mln tn could potentially lead to additional costs for millers on account of idle inventory and carrying costs, ISMA said in the release. Allowing exports could boost the financial liquidity of sugar mills and enable timely payments to cane farmers and contribute to the smooth functioning of the sugar industry and foster economic stability, it said. "We at ISMA share the government’s policy objectives for ensuring betterment of sugarcane farmers and the sustained growth of the sugar industry in India ensuring stability in sugar sector. We are constantly working with the government to find ways for economic wellbeing of the farming community and implement workable solutions to utilise the surplus generated this season," Deepak Ballani, director general of the Indian Sugar and Bio-Energy Manufacturers Association said.

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