Coronavirus has impacted the sugar industry worldwide. Sugar mills are suffering from financial shortage due to dip in sugar sales and sugar export halt.
According to the Indian Sugar Mills Association (ISMA), as per market sources, contracts for export of 42 lakh tonnes have been made till beginning of May 2020. As per reports available from mills and ports, about 36 lakh tons of sugar have moved/dispatched from the mills for export. Contracts for export of sugar are being signed, for various destinations, with major quantities being signed for exports to Indonesia and Iran. Shipments are also happening and are expected to normalize in the days to come.
Centre has urged the mills for diversion of excess sugarcane and sugar for production of fuel Ethanol as a long term solution for addressing the problem of excess sugar stock. It is already well accepted by the ISMA, as augmentation in Ethanol capacity for the upcoming years is at different stages of progress / implementation. But, we believe that the three stakeholders i.e. sugar mills, OMC’s and commercial banks should enter into a tripartite agreement for optimum utilization of the policies and incentives to increase the production of Ethanol in coming years.
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