Sugar millers across the country have contracted deals for export of around 25 lakh tonnes so far, and are on course to meet the allocated target of around 60 lakh tonne set by the Centre, says a Financial Express report.
Jaiprakash Dandegaonkar, chairman, National Federation of Cooperative Sugar Factories (NFCSF), pointed out that the country had exported a record 59 lakh tonne in the 2019-20 season and could do the same this season as well. There has been a delay in opening up of exports, but India can still make most of the two-month window of opportunity available until Brazil commences production in April, he said.
Prakash Naiknavare, MD of the national federation, said the country has scope to contract more deals in February and March. “At present, India is the only player in the international market with sugar stocks. Brazilian sugar is likely to hit the market in April and this season, Brazil has decided to focus again on ethanol production instead of sugar production. The cane area in Thailand is also going down since the last three years,” he explained.
The federation has, therefore, sought a similar export allocation of 60 lakh tonnes in the 2021-22 season as well. The government recently approved a subsidy of Rs 3,500 crore to sugar mills to enable them to export of 60 lakh tonne during the ongoing marketing year 2020-21. Export subsidies are allowed till 2022-23 under WTO norms. Millers are also seeking an increase in the minimum support price from Rs 31 per kg to Rs 38 per kg, and a decision is expected in the next few days.