Govt allows sugar exports of 6 million tonne in FY23
PremiumThe government has announced a sugar mill-wise export quota for all sugar mills in the country with an objective system based on the average production of sugar mills in the last three years and the average sugar production of the country in the last three years.
The union government on Sunday allowed the export of sugar up to 6 million tonnes during the sugar season FY23 stating that the quantity of exports in the future would be reconsidered after reviewing the sugarcane production in the country.
“By allowing sugar exports, the government has also protected the interest of cane farmers and sugar mills as mills will be able to take benefits of favourable international sugar price scenario," the ministry of consumer affairs, food & public distribution said.
The government has announced a sugar mill-wise export quota for all sugar mills in the country with an objective system based on the average production of sugar mills in the last three years and the average sugar production of the country in the last three years.
Further, to expedite the sugar exports and to ensure flexibility to sugar mills in the execution of the export quota, mills may decide to surrender the quota partially or fully within 60 days of the date of issue of the order or they can swap the export quota with domestic quota within 60 days, the ministry said.
During the sugar season (SS) 2021-22, India exported 110 LMT of sugar and became the second largest exporter of sugar in the world and earned about ₹40,000 crore worth of foreign exchange for the country. Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers.
By October, more than 96% of cane dues of farmers for sugar season 2021-22 were already cleared despite record procurement of sugarcane of more than ṁṁ ₹1.18 trillion, the government added.
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