The government will consider allowing additional 1 million tonnes (mt) of sugar over and above the 6.1 mt already permitted if the domestic production reaches 33.6 mt. A decision may be taken next month after assessing the output as most of the crushing will end by then.
“In sugar season 2022-23 (October-September), India is expected to produce 33.6 mt sugar with diversion of about 5 mt for ethanol production. Thus, total sucrose production in the country would be 38.6 mt. Though it is a little less than last year’s sucrose production of 39.5 mt (35.9 mt sugar and 3.6 mt for ethanol), still it is the second highest in last five years,” the food ministry said in an official statement Monday.
Sugar production has already reached 24.7 mt between October and February and mills have despatched 4.3 mt for exports. Keeping in view the domestic consumption of about 27.5 mt of sugar and exports of about 6.1 mt, there is expected to be a closing balance of about 7 mt of sugar which is sufficient to meet domestic demand for about 3 months, an official said.
As far as sugar production is concerned, Maharashtra and Karnataka have got less sugar production this season due to reduced yield which can be attributed to ratoon crop as well as untimely rains during September-October 2022. However, some states like Tamil Nadu had higher production than last year.
“The government will take a call next month on allowing more quantities of sugar exports, after assessing domestic production,” a food ministry official said, adding that availability is comfortable in the domestic market. Both wholesale and retail prices of sugar are on a decline in the last one month, he said.
“More exports are possible and we have a cushion for exports of additional 1 mt, provided production reaches our estimate,” the official said.
Average wholesale price of sugar declined to ₹3,841 per quintal on March 3 from Rs 3,860 per quintal a month ago while retail price is marginally down to ₹41.61 per kg from ₹41.8 per kg.