Sugar export News

Govt allowed exports of sugar up to 6 m tonne during sugar season 22-23. Balance quantity of sugar produced by sugar mills in the country would be allowed for exports. The government said the sugar export policy is an indication of focus on ensuring price stability in the sector in interest of domestic consumers.

India has become the largest producer of sugar in the world in 2022-23. India has also become the second largest exporter of sugar. The government has restricted sugar export up to 100 LMT from June 1 till October 31.

Union minister Prakash Javadekar said that the subsidy would be directly credited into farmers' account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to mill's account. 

The clarification came after some reports indicated that large quantities of sugar had been imported from Pakistan.

The country is all set to produce record 29.5 million tonnes of the sweetener in the current 2017-18 marketing season.

The government is working on a new subsidy scheme to be implemented in the current 2015-16 season, which started this month, to boost export of surplus sugar and help mills clear dues of over Rs 12,000 crore to farmers.

Sugar Companies exported 6,101 tonnes of the sweetener to the EU and 8,071 tonnes to the US till July 21 under the preferential quota system, Parliament was informed on Friday.

Worried at cane arrears to farmers mounting to Rs 21,000 crore, NCP chief and former Agriculture Minister Sharad Pawar Monday led a delegation to Prime Minister Narendra Modi demanding that the Centre create sugar buffer stock to bail out cash-starved mills.

Sugar mills will be unable to sign any major export deals despite recent government incentives if prices do not rise about 10 percent to 14.4 cents per pound, a top industry official said.

The government Thursday approved subsidy on export of up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year, a move that would boost millers' cash-flow and enable them to clear mounting sugarcane price arrears that have crossed Rs 12,000 crore.

The minister also said mills owed about 43 billion rupees ($692 million) to cane growers for the last season ended Sept. 30.