It could cap sugar exports at just eight million tonnes in 2022-23, compared with estimated despatches of 11.2 million tonnes in the recently concluded marketing year, he added.
The government will likely cut the sugar export quota by 29% for this marketing year that started on October 1 to keep domestic supplies steady, a top source said.
It could cap sugar exports at just eight million tonnes in 2022-23, compared with estimated despatches of 11.2 million tonnes in the recently concluded marketing year, he added.
The exportable surplus for 2022-23 is going to be the tune of eight million tonnes. The food ministry will soon take a decision on whether to put the entire amount under the open general license he said.
In May, the government announced an export cap of 10 million tonnes for 2021-22 to control domestic prices. Later, it allowed the export of another 1.2 million tonnes.
The government has in recent months resorted to export curbs to keep a lid on prices of essential commodities like wheat, rice, and sugar.
In a meeting with the director general of foreign trade Santosh Kumar Sarangi last week, top sugar industry executives pitched allowing exports of eight million tonnes under the open general license in 2022-23, said the source.
According to an estimate by the Indian Sugar Mills Association, net sugar production, after factoring in the diversion of cane juice for making ethanol, would be around 35.5 million tonnes. It estimates consumption to be about 27.5 million tonnes. This leaves the scope for export of eight million tonnes without upsetting carry-over domestic stocks of six million tonnes.
India had shipped out only 0.62 million tonnes of sugar in 2017-18, 3.8 million tonnes in 2018-19, and 5.96 million tonnes in 2019-20, against the target of six million tonnes, about seven million tonnes of sugar was exported.
