Mumbai: The global shortage of sugar has triggered the demand, hence Indian government has taken a precautionary step by putting a cap on the export of sugar to 100 lakh metric tonnes (LMT). Sugar industry bodies in India have welcomed the government move.
B. B. Thombare, president of West Indian Sugar Mills Association (WISMA), said that the government’s decision of restricting sugar exports from June 1, 2022, will not affect the domestic sugar prices.
In a press release issued by WISMA, Thombare said, “It will have negligible impact on sugar mills and sugarcane farmers. The carryover stock of sugar at the beginning of the season was 107 LMT and mills in the country have produced 350 LMT sugar till May 15 in the ongoing season. The domestic consumption of sugar in the country is 270 LMT. After consumption of available stock, we are left with 187 LMT of excess sugar. This season, mills have contracted 90 LMT of sugar and already exported 74 LMT. Government capped sugar export at 100 LMT, therefore we still have opportunity to export 26 LMT of sugar.”
“The sugar prices in the domestic market won’t fall and the decision of sugar restrictions won’t have any impact on the payment of cane farmers,” he further added.
Indian Sugar Mills Association (ISMA) has also applauded the government step to restrict the sugar exports. ISMA’s President Aditya Jhunjhunwala said, “The sugar industry had requested the Government to allow sugar export of about 95 LMT in the current season. As per the government notification, sugar export is capped at 100 LMT. The expected sugar exports of 95-100 LMT in the current season would be the highest that the country has achieved so far. This will be beneficial to all stakeholders including sugarcane farmers.”
Sudhanshu Pandey, Secretary, Department of Food and Public Distribution, while addressing a press conference here, said, “The government wants to ensure enough sugar stock availability in India, especially during sugar lean season of October and November which is the festival season in India. The global situation reflects a shortage of sugar, this may trigger the demand globally and so as to safeguard domestic availability and interests the step has been taken by the government.”
