As global sugar prices continue to remain firm, Indian sugar industry body Indian Sugar Mills Association (ISMA) has requested the central government to announce permission for export of 80 lakh tonnes of sugar in 2022-23.

In a letter written to the Food Secretary Sundhanshu Pandey on June 10, a copy of which is with ET, ISMA has said that immediate announcement of next year’s sugar policy will help the mills enter into futures contracts at good prices.

ISMA has requested the government to review the current sugar export policy and allow export of at least 80 lakh tonnes of sugar under Open General License (OGL) during the next sugar season starting October 1, 2022.

“We believe it is the right time to announce the same as the current global prices are firm. Millers will get an opportunity to enter futures contracts at good prices. Accordingly, they can plan their production for next season in advance,” said ISMA in the letter.

According to ISMA, the area under sugarcane plantation for 2022-23 is expected to be higher by 2% than the ongoing sugar season. As the IMD has forecast a normal monsoon in 2022, ISMA thinks that it will augur well for the sugarcane crop during its growth phase.

The sugar production in 2022-23 will not be less than the sugar production of the current year, which is 394 lakh tonnes without considering diversion for ethanol. The cane that was diverted for ethanol in the current year was equivalent to 34 lakh tonnes of sugar, the letter said.

“However, it appears that the sugar production in the next year could be on the higher side. Therefore, even after an expected higher diversion of sugar towards production of ethanol next year, there will be sufficient surplus sugar available for exports,” said ISMA.

Source:- economictimes.indiatimes.com