Sugar industry seeks 10 lakh tonnes additional export quota

Sugar industry seeks 10 lakh tonnes additional export quota

by admin- Tuesday, July 19th, 2022 07:08:41 AM

Export of sugar changed into placed below restrained category from June 1 and is legitimate till October 31
ISMA assures this kind of circulate will not affect the home market
Ahead of the assembly of the committee of secretaries, the sugar enterprise has sought release of 10 lakh tonnes (lt) of additional export quota to turbines and bringing back export below the “unfastened” category from subsequent season beginning October 1. A significant quantity is possibly to be cleared although the authorities does no longer approve the whole 10 lt, sources stated.

The committee of secretaries, headed with the aid of the Cabinet Secretary, is in all likelihood to take a decision this week on the difficulty after thinking about its feasible impact at the domestic marketplace, the sources said.

In a letter to Food Secretary, Aditya Jhunjhunwala, President of the Indian Sugar Mills Association (ISMA), is believed to have conveyed the industry’s needs mentioning better sugarcane availability within the subsequent season (October-September) as generators in Maharashtra are probably to start crushing in October itself.

He further said even after a document export of 86 lt among October and May in the contemporary season, the common ex-sugar mill prices have now not expanded and nonetheless hover around ₹32-35/kg, that is under the cost of manufacturing. “Therefore, there’s no reason to agree with that this sugar export of 10 lt within the modern season will affect the home market,” Jhunjhunwala said.

Average retail fee
According to Consumers Affairs Ministry data, the all-India average retail charge of sugar became hovering between ₹forty.96 and ₹forty one.Seventy three in keeping with kg inside the past six months.

The ISMA president stated the opening balance as of October 1 will be sufficient to satisfy the call for for two-and-a-half of months and by way of that time by way of sugar from the new season might be available.

Export of sugar (uncooked, subtle and white sugar) was located beneath constrained class from June 1 and is valid till October 31, in line with a notification issued on May 24 by means of the Directorate General of Foreign Trade (DGFT). It allowed export only via lets in and has fixed a maximum quantity of a hundred lt for the complete season.

In the primary week of June, the Food Ministry issued a notification allocating 10 lt of quota on a pro-rata foundation amongst those exporters who had implemented for the lets in. But the turbines have been allotted 8 lt to sell to those exporters after factoring in the amount in transit.

Raw shares caught with generators
Jhunjhunwala said sugar turbines had carried out for 17 lt of export quota primarily based on the contracts they’d already signed, however the government granted simplest for 8 lt. As a end result, the 6-7 lt of raw sugar mendacity with generators were given stuck due to the fact that they plan raw sugar production earlier primarily based on export demand, he pointed out. He has advised the authorities to bear in mind the industry’s demand retaining in view those shares which can neither be refined now nor will be shipped out without allows.

According to the Agriculture Ministry statistics, India’s sugarcane acreage till July 15 this 12 months become 53.31 lakh hectare (lh), a notch beneath year-ago’s fifty three.7 lh. Last year’s general acreage became 54.97 lh inside the entire season.

The ISMA president has also appealed that eighty lt of sugar should be placed below open fashionable licence (OGL) within the subsequent season between October and April. He said this changed into the proper time to study the sugar export coverage and announce the same for subsequent 12 months because it will assist millers to enter into destiny contracts and plan their manufacturing earlier.

He also said the government ought to evaluate the export coverage after April, primarily based on actual/envisioned manufacturing and export, even as bringing lower back the Maximum Admissible Export Quota (MAEQ) machine, which changed into last applied in 2020-21 season.

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