Union Minister Jayant Chaudhary has asked the Central Government to allow sugar exports due to positive forecasts for sugar production in India. He warned that the expected rise in sugar output could lower domestic prices, hurting the sugar market. Chaudhary has written to Minister Pralhad Joshi, who oversees Consumer Affairs, Food, and Public Distribution, asking for permission to export 20 lakh tonnes of sugar.
In his letter to Joshi, Chaudhary mentioned estimates from the Indian Sugar and Bio Energy Producers Association (ISMA), predicting around 333 lakh tonnes of sugar for the 2024-25 season. Including an initial stock of 90 lakh tonnes as of October 1, 2024, the total sugar supply is expected to be about 423 lakh tonnes. With domestic needs at 290 lakh tonnes, there will be a surplus of about 133 lakh tonnes, much higher than the usual reserve of 55 lakh tonnes.
Chaudhary pointed out that too much sugar could lower domestic prices and hurt the market. Extra inventory could also increase storage costs for sugar mills. He stressed that allowing sugar exports now would provide financial relief to the industry, helping cover operational costs and clear outstanding payments to farmers.
Chaudhary also said that exporting sugar would help the country earn foreign exchange and stabilize the local market. He urged the government to consider allowing at least 20 lakh tonnes of sugar to be exported this season, ensuring it wouldn’t disrupt domestic supply.
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