Mumbai, May 6 (Commodities Control): Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the trade body, has requested the government to remove restriction on sugar exports in order to help the industry to maintain stability and financial health. The request follows India's bulging sugar production that has surpassed domestic consumption estimates.
Benefiting from favorable weather conditions and increased Fair and Remunerative Price (FRP), sugar production has soared, with ISMA projecting a robust closing stock. As of April 2024, India's sugar production has reached approximately 314 lakh tonnes, with an additional 5-6 lakh tonnes anticipated from mills in Karnataka and Tamil Nadu, bringing the final net sugar production estimate close to 320 lakh tonnes.
Despite a lower number of operational factories compared to last year, ISMA foresees a significant closing stock of 91 lakh tonnes by September 30, 2024, significantly surpassing the normative stock of 55 lakh tonnes. This surplus, while advantageous, could potentially burden millers with idle inventory and carrying costs.
Looking ahead, ISMA anticipates a moderate crushing season in 2024-25, buoyed by factors such as early FRP announcements and favorable pre-monsoon rainfall. With projections indicating an above-normal monsoon, the organization expects higher stocks in the upcoming year.
In light of these projections, ISMA has petitioned the government to authorize the export of 20 lakh tonnes of sugar in the current season. This move aims to ensure ample stocks for domestic consumption and the Ethanol Blending Program (EBP), while enhancing the financial liquidity of sugar mills and facilitating prompt payments to farmers.
Deepak Ballani, Director General of ISMA, expressed satisfaction with the industry's positive production figures, attributing them to collective efforts and resilience. Emphasizing the importance of financial stability for mills and timely farmer payments, Ballani urged the government to consider the export proposal, underscoring ISMA's commitment to the welfare of sugarcane farmers and the sustained growth of the Indian sugar industry.
(By Commoditiescontrol Bureau; +91-9820130172)
0 Comments 
Post Comment 
