Govt awaits first advanced crop estimates to decide on sugar allocation for exports

India, the world's second-largest sugar exporter, last year had placed sugar in the restricted category until October 31, 2023 "to prevent uncontrolled export of sugar and with a view to ensure sufficient availability of sugar for domestic consumption at a reasonable price".

The Centre, which recently extended restrictions on sugar exports beyond October, is waiting for the first advanced crop estimates for 2023-24 to decide on the allocation of sugar for exports, Food Secretary Sanjeev Chopra said in a press briefing on October 19.

"A decision on alloting export quota will be taken in due course once the Agriculture Ministry’s crop data as well as the feedback we get about the likely production of sugarcane next year (2024-25 sugar season) is in," he said.

Per him, while the country has enough sugar for domestic requirement, an erratic monsoon and deficient rain in key cane-growing states have put any export plans on hold till the government has a clear idea about how the crop output is looking.

“August was a very dry month, as a result of which there was stress on sugarcane crop in Karnataka and Maharashtra. However, UP has received good rain; while it will compensate for a drop from other states to some extent, we are not sure if it can do so fully,” the secretary said.

“We are waiting for the first advanced estimates for 2023-24. A decision on release of sugar quota for exports will be based on our production estimates,” he added.

Sugar stocks as of October 1 are standing at 57 lakh tonnes, recording only a marginal drop of 4 lakh tonnes on-year.  Furthermore, the export curbs are keeping the Centre from getting weary of any domestic shortages in the upcoming festive months.

In addition to raw, white, and refined sugar, organic sugar has also been put in the ‘restricted’ category to ensure healthy stocks of sugar in the country “which would further ensure sufficient sugar availability to common Indian consumers at stable prices throughout the year,” a statement issued by the food ministry said. The Consumer Price Inflation (CPI) for the commodity was recorded at 4.73 percent in September.

“Thanks to government policies, the sugar industry of the country has been revived in past few years. We have diverted record sugar for ethanol production last year due to record sugar production,” Chopra added. Average prices of sugar stood at Rs 44 per kilogram on October 18 as per the Department of Consumer Affairs.

India, the world's second-largest sugar exporter, last year had placed sugar in the restricted category until October 31, 2023 'to prevent uncontrolled export of sugar and with a view to ensure sufficient availability of sugar for domestic consumption at a reasonable price.'

It allowed mills to export only 6.1 million tonnes of sugar during the current season ending on September 30, after letting them sell a record 11.1 million tonnes last season.

International prices of the commodity have also remained elevated with the FAO Sugar Price Index averaging 148.2 points in August, up 1.9 points (1.3 percent) from July and as much as 37.7 points (34.1 percent) from its level in the same month last year.

Also read: Govt extends restrictions on sugar exports beyond October