New Delhi, June 7 : It is a matter of pride for a country to note that during the recent past (Sugar Year 2020, 2021 and 2022 in progress) India has exported a record 222 lakh tonnes sugar. This has helped trim down the huge inventory under which the industry was suffocating on account of blockage of funds and mounting of interest on it. What is noteworthy is that the share of cooperative mills in this stupendous export performance has been massive 41 per cent.
The cooperative sugar mills in Gujarat, Maharashtra and Karnataka took full advantage of proximity to port and Government of India ‘s incentive in the years 2020-2021 have helped their efforts. Of the total 222 lakh ton, 108 LTS is Raw, 114 LTS is White (refined) sugar. The major destinations to which India’s sugar is exported are Indonesia (18 per cent), Bangladesh ( 10 per cent) and other African and Middle East countries ( 66 per cent).
The Indian raw sugar has been preferred by the importing countries on the strength of it being VVHP (Very Very High Polarised ) because of fresh cane used for crushing. Cumulatively these exports have earned revenue of Rs 60,800 crores. Simultaneously despite all the odds like Covid pandemic , tightened finances and reduced domestic consumption, the Cooperative sugar sector has topped the list of mills who have cleared entire cane arrears. As against the cane arrears 18,000 crores, the share of Cooperative in Maharashtra, Gujarat and Karnataka has been very meagre.
“With the Government of India’s interventions of capping current years sugar export, the export release orders issued to Cooperative is barely 47 per cent which in our opinion is not in tune with performers vis-a-vis non performers. Balance 53 per cent raw sugar remaining without ERO’s will cause a heavy financial loss if not permitted for exports as there is no local market for this stock which tends to deteriorate in storage“ says Shri Jaiprakash Dandegaonkar, the President of National Federation of Cooperative Sugar Factories which represents 258 cooperative sugar mills and nine Cooperative sugar federations across India.
In a separate letter, Shri Sharad Pawar, former Union agriculture minister and the sitting Member of Parliament, has written to the Prime Minister bringing these anomalies to his notice and requesting him to increase the current cap of one million imposed on sugar export and also to continue sugar export under Open General Licence in the new sugar year starting from October 2022. He has backed this demand with the data and projections of estimated cane area, cane availability, sugar production and likely surplus necessitating need of its exports.
