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The Union government lifted the ban on sugar exports partially on Monday (January 20, 2025), allowing industries to export one million metric tonnes of sugar in the 2024-25 season ending in September.
Announcing the decision, Union Food Minister Pralhad Joshi said the move will ensure price stability, benefit five crore farmer families and five lakh workers, and strengthen the sugar sector. The export ban came into effect in October 2023 to regulate domestic prices.
The Union Food Ministry further said the decision will ensure timely payments to farmers.
The move is also expected to boost liquidity for sugar mills and balance sugar availability and prices for farmers. The Food Ministry’s order allows the millers to export all grades of sugar within allocated quantities. They can export sugar either directly or through traders until September 30.
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) welcomed the decision and said it will address the issue of surplus sugar stocks. “This timely decision will significantly aid sugar mills by enhancing financial liquidity, ensuring timely payments to sugarcane farmers, and contributing to the overall strength of the agricultural economy. It is a testament to the government’s focus on a sustainable and thriving sugar sector,” the ISMA said in a statement, adding that export relaxation has been a long-pending demand.
Deepak Ballani, director-general, ISMA, told The Hindu, “This decision provides significant relief to sugar mills, enabling them to generate crucial revenue, which will contribute to timely cane payments to farmers.”
The opening stock for the current sugar season, which began on October 1, 2024 was 80 lakh tonnes. Total production was estimated to be 320 lakh tonnes, and of this, about 40 lakh tonnes would be diverted for ethanol production. The annual domestic sugar consumption would be almost 280 lakh tonnes. Even with a closing stock of 55 lakh tonnes for the 2024-25 sugar season, there would be 20 lakh tonnes of additional stock with the mills.
“We sought permission to export 10 lakh tonnes now and another 10 lakh tonnes later when more crop estimates would be available. The government permitting export of 10 lakh tonnes was a progressive step,” he said. On international demand, Mr. Ballani said the mills, especially those in Karnataka, Maharashtra, and Gujarat that were located close to the ports, would enjoy price viability for exports.
Published – January 20, 2025 08:23 pm IST