India can export 20 lakh tonnes of sugar this season: ISMA

According to the industry estimate sugar production is likely to be around 333 lakh tonnes in the current marketing year while domestic consumption would be around 290 lakh tonnes, ISMA President M Prabhakar Rao said.

New Delhi: Indian mills have around 20 lakh tonnes of excess sugar that can be exported, industry body Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said on Thursday urging the government lift ban on export of the sweetener.

According to the industry estimate sugar production is likely to be around 333 lakh tonnes in the current marketing year while domestic consumption would be around 290 lakh tonnes, ISMA President M Prabhakar Rao told reporters.

He added that after taking into account the stocks from the previous season at least 20 lakh tonnes of sugar can be comfortably exported. Mills have 80 lakh tonnes of sugar in stock from the previous season that ended in September.

“Exports will help stabilize the sugar market, improve liquidity for mills and ensure timely payment to farmers,” said Rao

Talking to reporters on the sidelines of the Annual General Meeting of ISMA, Food and Public Distribution Secretary Sanjeev Chopra said the government is considering the Industry proposal to allow export of the excess sugar.

India has not allowed export of sugar in the past two seasons. India's sugar season runs from October to September.

Speaking at the AGM, ISMA President Rao requested the government to link the price of sugarcane paid to farmers with the minimum support price (MSP) of sugar.

The government annually sets the fair and remunerative price (FRP) for sugarcane based on the recommendations of the Commission for Agricultural Costs and Prices. Sugar mills are required to pay to farmers as per the FRP.

In 2018, the government introduced minimum support price (MSP) for sugar. The MSP for sugar was increased to Rs 31 per kg in February 2019 from Rs 29 per kg in 2018. Sugar MSP has not been revised since February 2019, while FRP has been cumulatively increased by Rs 65 per quintal since then, ISMA president said.

Based on data collected from various regions, ISMA has estimated the cost of sugar production for the 2024-25 sugar season at Rs 41.66 per kilogram. “Accordingly, we have proposed that the MSP be revised to Rs 39.14 per kilogram, aligning it with the FRP and improving financial sustainability for the sugar industry,” Rao said.

ISMA president underlined that the absence of a direct link between the price of sugarcane and sugar is making the cane price and payment sustainable.