ISMA requests authorization to export 80 lakh tonnes of sugar in the marketing year 2022–2023 amid surplus production

Aditya Jhunjhunwala, the president of the Indian Sugar Mills Association (ISMA), has addressed a letter to Piyush Goyal, the minister of food and consumer affairs, over this.

Given the excess output, the government has been urged to permit the export of 80 lakh tonnes of the sweetener during the 2022–23 marketing year, which begins in October.

Aditya Jhunjhunwala, the president of the Indian Sugar Mills Association (ISMA), has addressed a letter to Piyush Goyal, the minister of food and consumer affairs, over this.

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October through September is the marketing year or season for sugar.

According to a preliminary estimate, Jhunjhunwala stated that the net sugar production—which excludes the diversion of sugar for the manufacturing of ethanol—is anticipated to rise from 394 lakh tonnes in the current marketing year to approximately 400 lakh tonnes in 2022–23.

He did note that 45 lakh tonnes of sugar, as opposed to 34 lakh tonnes in the current marketing year, are anticipated to be diverted for ethanol.

According to the ISMA president, this indicates that the actual sugar production in 2022–2023 will be 355 lakh tonnes.

“Therefore, after considering domestic sugar consumption of 275 lakh tonnes in the next season (2022-23), it becomes imperative to export at least 80 lakh tonnes of surplus sugar out of the country in order to maintain optimum sugar balance in the country,” Jhunjhunwala said.

The export of excess sugar would also aid in sustaining domestic sugar prices, which would improve mills’ liquidity and allow them to make timely payments to sugarcane farmers.

The ISMA president stated that due to the abundance of available cane, sugarcane crushing activities are anticipated to begin in early October of the 2022–23 marketing year.

In order for mills to join into future contracts and organise their output in advance, Jhunjhunwala requested the government to make the export policy for the 2022–2023 marketing year public as soon as possible.

In the 2020–21 marketing year, India exported 70 lakh tonnes of sugar, compared to 59 lakh tonnes in 2019–20 and 38 lakh tonnes in 2018–19.