The government, which has authorized the export of 6 million tonnes of sugar until May 31 of the current 2022-23 season, said on Sunday it may consider allowing more exports after a periodic assessment of national production.

A notification from the Ministry of Food issued on November 5 indicates that an export quota of 6 million tons has been authorized from November 1 to May 31, 2023, with the possibility for the millers to export by themselves or through exporters or trade with domestic sales quota.

In a statement issued on Sunday, the ministry said the export quota was set based on the initial available estimates of the country’s sugar cane production.

“The production of sugarcane in the country will be reviewed periodically and based on the latest available estimates, the amount of sugar exports to be allowed may be reconsidered,” the ministry said.

Factories were asked to quickly export allocated sugar quota to make an advance payment to cane growers, he said.

The sugar export quota per sugar mill has been set for the current season (October-September) based on the sugar mills’ average production over the past three years and the country’s average sugar production over the same period, he said.

In addition, to expedite sugar exports and provide mills with flexibility in fulfilling export quota, mills are permitted to return quota in part or in full within 60 days from the date of issuance of the order. or they can exchange the export quota with a national quota. within 60 days.

“This system would ensure a lesser burden on the logistics system of the country as the trading system would reduce the need to transport sugar from remote locations to ports for exports and the movement of sugar across the length and breadth of the country. for domestic consumption,” the ministry said.

In addition, the exchange would also ensure the liquidation of sugar stocks of all sugar mills. Sugar mills, which are unable to export, could swap their export quota with the national quota of sugar mills that are able to export more, mainly due to their proximity to ports, he said. declared.

At the end of the 2022-23 season, it is expected that most sugar mills will be able to sell their production on the national or international market through exports and pay cane duties on time. farmers.

“Thus, the policy has created a win-win situation for the country’s sugar mills,” the ministry added.

In the current 2022-23 season, the ministry said the availability of sugar for domestic consumption will be 27.5 million tonnes, while 5 million tonnes of sugar will go to ethanol making and that the closing balance would be around 5 million tonnes at the end of the season.

Sugar production of the 2022-23 season has already started in Maharashtra and Karnataka from October, while in Uttar Pradesh and the rest of the cane growing states it would start within a week.

In October alone, factories produced 4.05 lakh tonnes of sugar, down 14.73% from the year-ago period, according to the cooperative body National Federation of Cooperative Sugar Factories Limited. .

The government had restricted sugar exports towards the end of the 2021-22 season (October-September) from June 1 to ensure sufficient stocks for domestic consumption and prevent any spike in retail prices during the festival period.

Around 11 million tonnes of sugar were exported in the entire 2021-22 season and earned ₹40,000 crore in foreign exchange for the country, the ministry said.

Timely payment and low cost of ownership of mill inventory also allowed for quick clearing of farmers’ cane arrears.

As of October 31, over 96% of farmers’ cane dues for the 2021-22 season have already been wiped out despite a record cane purchase of over ₹1.18 lakh crore, he said.

According to the ministry, sugar exports fall under the “restricted” category until October 2023. By restricting sugar exports, domestic prices will remain under control and no major inflationary trends will occur in the domestic market.

The Indian sugar market has already seen a very nominal increase in prices which is in line with the increase in the fair and remunerative price of sugarcane for farmers.

Over the past six years, the government has taken multiple timely initiatives in the sugar sector allowing sugar mills to fend for themselves.

Sugar export has been allowed without subsidies this season and mills are expected to operate well without financial support.

Sugar production reached a record 35.92 million tonnes for the 2021-22 season. Maharashtra, Uttar Pradesh and Karnataka are the country’s three main sugar producing states.