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HomePosts Tagged "sugar export"
Country, India, Sugar industry, World

As of October 31, 2022, more than 96 per cent of cane dues of farmers for SS 2021-22 have already been cleared despite record procurement of sugarcane of more than Rs 1.18 lakh crore

The government of India has allowed the export of sugar up to 60 Lakh Metric Tonne (LMT) during the sugar season (SS) 2022-23. The Director General of Food Trade (DGFT) has already been notified to extend the inclusion of sugar exports under the ‘Restricted’ category up to October 31, 2023.

The Central Government has prioritised the availability of about 275 (LMT) of sugar for domestic consumption, about 50 LMT of sugar for diversion to ethanol production and has a closing balance of about 60 LMT as of 30.09.2023. A balanced quantity of sugar produced by sugar mills in the country would be allowed for exports. Since at the beginning of sugar season 2022-23, initial estimates of sugarcane production are available, it has been decided to allow the export of 60 LMT sugar. The sugarcane production in the country will be reviewed periodically and based on the latest available estimates, the quantity of sugar exports to be allowed could be reconsidered.

During SS 2021-22, India exported 110 LMT of sugar and became the second largest exporter of sugar in the world and earned about Rs 40,000 crore worth of foreign exchange for the country. Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers. As of October 31, 2022, more than 96 per cent of cane dues of farmers for SS 2021-22 were already cleared despite record procurement of sugarcane of more than 1.18 lakh crore rupees.

In the sugar export policy for SS 2022-23, Government has announced a sugar mill-wise export quota for all sugar mills in the country with an objective system based on the average production of sugar mills in the last three years and the average sugar production of the country in last 3 years. Further, to expedite the sugar exports and to ensure flexibility to sugar mills in the execution of the export quota, mills may decide to surrender the quota partially or fully within 60 days of the date of issue of the order or they can swap the export quota with domestic quota within 60 days.

At the end of Sugar Season 2022-23, it is expected that most sugar mills will be able to sell their products either in the domestic market or in the international market through exports and will clear the cane dues of farmers in time. Thus, the policy has created a WIN-WIN situation for sugar mills in the country.

As of October 31, 2022, more than

Foodgrains, Trade

India is among the world’s leading producers of sugar, spices, cereals, milk, fruits and vegetables, red meat, and seafood products. India’s export basket is a diversified mix led by rice ($9.65 billion), wheat ($2.19 billion), sugar ($4.6 billion), beef (1.5 million metric tonnes carcass weight equivalent (CWE) of beef and veal were exported from India in 2021) and other cereals ($1.08 billion); altogether exports of agricultural products (including marine and plantation products) for the year 2021-22 have crossed $50 billion, the highest level ever achieved for agriculture exports. But the country recently saw a ban on wheat exports when there was a turn in the global geopolitical situation. Given the external factors, India’s resources as well as its domestic needs, an important question that arises is how sustainable is this growth in agri-exports? Here, AgroSpectrum tries to find an answer.

Agro processing and agricultural exports are now a key trade area and it is a matter of satisfaction that India’s role in global export of agricultural products is steadily increasing. Recent growth rates show that agri-food production is rising faster and export is witnessing accelerated growth. This offers further scope and opportunity for capturing overseas markets to earn foreign exchange and enable producers to earn higher prices for farm produce. This has been made possible largely by rising global commodity prices and also by the Agriculture Export Policy of the Ministry of Commerce and its various export promotion agencies like Agricultural and Processed Food Products Export Development Authority (APEDA), the Marine Products Export Development Authority (MPEDA), and commodity boards. Having come this far, we now need to examine how we can carve out a sustainable trajectory for agri-exports that ensures stability for all stakeholders in the ecosystem. AgroSpectrum  spoke to a few experts to understand better.

Sugar export curbs

Latest data released by the sugar industry body, Indian Sugar Mills Association (ISMA) stated that as the world’s largest producer and second biggest exporter of the sweetener, sugar exports from India have touched a record 8.6 million tonnes till May of the ongoing 2021-22 marketing year ending September. The country exported a total of 7 million tonnes of sugar in the marketing year 2020- 21, while domestic production stood at 31.19 million tonnes in the same period. This steady rise took a turn just after the centre banned wheat exports. After an intense heatwave hit output and domestic prices hit a record high, the Directorate General of Foreign Trade (DGFT) has now placed sugar under the restricted category. The central government has banned the export of sugar effective from June 1. The curbs on sugar export will continue till October 31, 2022.

To read more click: E-Magazine – Agrospectrum India

India is among the world’s leading producers