Sanjeev Chopra, Food Secretary, Government of India, has said that sugar production prospects have improved after September rains, and there is no shortage of sugar in the country.
The Government on Thursday released first tranche of domestic sales quota of 13 LMT which sugar mills can start selling with immediate effect. More quota will be released in due course in view of market conditions. The Food Secretary has asked sugar mills to sell more sugar in the market to control proves.
He further reiterated that the country is on track to achieve 12% ethanol blending target in the current season. He said that in spite of the bounces in between, the Government is confident to meet the 12% ethanol blending capacity by the end of the current ethanol supply year.
On Thursday in a PIB Press Release issued, the Government has said that with 83 LMT at the end of August 2023 and expected beginning of crushing in Oct 2023, India has sufficient stocks for domestic consumption with absolutely no shortage for festivals.
The release said that the Government is committed to ensure sugar for domestic consumers at reasonable price throughout the year.
There have been speculations regarding next year’s sugarcane crop and continuity of current Government policies vis-à-vis exports following less rains in Maharashtra and Karnataka. However, in Uttar Pradesh monsoon rains have been sufficient.
Government allowed mills to export 6.1 MMT of sugar during the current 2022-23 season, after record export of 11.1 MMT of sugar last season.
In the global market, sugar prices have been moving upwards since past one week. On Thursday Oct NY world sugar #11 (SBV23) on Thursday closed +0.14 (+0.52%), and Dec London white sugar #5 (SWZ23) closed +6.30 (+0.87%).
International Sugar Organisation released its sugar-balance sheet expectation for 2023-24 SS. It said that global sugar production will likely drop by 1.21 per cent in the 2023-24 season starting October, while the market is projected to face a deficit of 2.118 million tonnes (mt). The organisation has projected sugar production in 2023-24 at 174.84 mt against 177.02 mt this season. Consumption may increase to 176.96 mt compared with 176.53 mt.
However, there are certain factors to look out especially from the point of view of sugar production.
Uppal Shah, Co-founder and CEO, AgriMandi said, “Brazil is talking about record crop, but again the high crude prices can see higher diversion towards ethanol production. The next couple of months are crucial especially for India. There are reports of sugar export cut, but these are early days. January 2024 would be an ideal time to take a call for the rest of the season.”
