ISMA hails sugar export policy, confident of govt nod for add'l 3 mn tons

ISMA welcomes government's decision to allow export of 6 million tonnes of sugar till May 31 of the 2022-23 season and expressed confidence of getting export nod for additional 3 million tonnes

Indian Sugar Mills Association (ISMA) on Monday welcomed the government's decision to allow export of 6 million tonnes of sugar till May 31, of the 2022-23 season and expressed confidence of getting export nod for additional 3 million tonnes.

While the industry had requested the government to allow exports of 9 million tonnes of sugar, the Food Ministry on November 5, permitted only 6 million tonnes on a quota basis till May 31 of the 2022-23 season (October-September).

The government has said it could reconsider further quantities after assessing the domestic production.

"Sugar industry is confident that the government will allow sugar exports of additional 3 million tonnes," ISMA said in a statement.

This would ensure steady domestic prices, enabling timely cane price payment to farmers and lower inventory levels ensuring there are no additional costs incurred by mills, it added.

ISMA hailed the government's sugar export policy and said the tradable quota scheme will ensure transparency in sugar exports.

Also, the fact that the government has allowed sugar mills to exchange their export quota with domestic quota of any other sugar mill within 60 days from the date of issuance of the order, will ensure liquidation of the surplus stock, and mills will be able to generate revenue from it thereby ensuring timely cane payment to farmers, it said.

The government had restricted sugar exports towards the end of the 2021-22 season (October-September) from June 1, to ensure sufficient stocks for domestic consumption and prevent any rise in retail prices during the festival period.

About 11 million tonnes of sugar was exported during the entire 2021-23 season and earned Rs 40,000 crore worth of foreign exchange for the country, according to official data.