No sugar exports for now, domestic supply priority

NEW DELHI : The government is not favour of allowing surplus sugar exports at present despite a projection of around one million tonne sugar in the current 2024-25 sugar season (October-September), Shri Sanjeev Chopra, Secretary, Department of food and public distribution on Thursday said

“We will take the decision to allow sugar exports in due course in the current season as the first priority is to ensure adequate supplies for domestic consumption and then ensuring supplies for ethanol production,” Chopra said at the sideline of annual general body meeting of Indian Sugar and Bio-Energy Manufacturers Association (ISMA).

According to the food ministry projection, the sugar production is estimated for 2024-25 sugar season to be around 32 MT while domestic consumption would be 27 MT.  The government has allotted 4 MT of sugar to be diverted to ethanol manufacturing.

Opening stock of sugar on October 1, 2024 was 7.9 MT according to food ministry. For 2023-24, sugar production is estimated at 32 MT, 

India exported 6 MT of sugar in the 2022-23 season and since then the government has not allocated any quota for sugar export. Food ministry has earlier ruled out providing any quote for sugar export in the current season as they are closely watching the supply situation as crushing of sugarcane has commenced. 

ISMA had urged the government to allow around 2 MT of sugar exports in the current sugar season so that mills don’t have to incur the carrying cost of surplus sweetener due to expectation of better harvest and comfortable opening stocks.

On the sluggish lifting of rice for grain-based distilleries for ethanol manufacturing, Chopra said that prices were not viable. The food ministry has allotted 3.2 MT of rice for ethanol production at Rs 28/kg which industry association has not economically viable. “We will discuss the viability issues,” he said.

According to an official note, the blending percentage has touched 15.83% in July, 2024 and cumulative blending percentage has crossed 13.6% in the ethanol supply year 2023-24. Encouraged by this progress, the government has set a target of reaching 20% blending by the end of 2025-26.

India is the world’s second largest sugar producing country after Brazil.

The government sees the ethanol blending program as a key to meeting its green energy commitments and improving the financial health of sugar mills.