ISMA demands export of 20 lakh tonnes of sugar from the government, farmers will get benefits

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to allow the export of 20 lakh tonnes of sugar in the current marketing season ending in September. Mill owners believe that the export of surplus sugar will bring in cash for them, which will enable them to make timely payments of cane to farmers.

The government has prohibited sugar exports in an effort to increase domestic supply and manage retail prices for the current 2023–24 marketing year, which runs from October to September. Sugar mills were permitted to export roughly 60 lakh tonnes of sugar during the most recent marketing season. By the end of April 2024, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) predicted on Monday that the production of sugar will have increased to approximately 314 lakh tonnes.

Additional production of 5-6 lakh tonnes is expected from mills in Karnataka and Tamil Nadu and thus the net sugar production is estimated to be close to 320 lakh tonnes. Sugar mills were allowed to export about 60 lakh tonnes of sugar in the last marketing year. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said in a statement on Monday that production is set to reach about 314 lakh tonnes by the end of April 2024.

Considering the opening stock of about 56 lakh tonnes as of October 1, 2023, and the estimated domestic consumption of 285 lakh tonnes for the season, ISMA has estimated a significantly higher closing stock of 91 lakh tonnes by September 30, 2024. The association also expects a moderate crushing season in 2024-25 due to several factors, including the early announcement of an increase in fair and remunerative price (FRP) for sugarcane, favorable pre-monsoon rainfall, and forecasts indicating an above-normal monsoon. Are included. These factors are expected to drive the stock higher in the coming year.