Indian sugar mills association

Millers struggle to sell sugar at MSP, opt to export via third-party quota

Pune: Finding it tough to sell sugar at the government set minimum selling price (MSP), a

large number of millers from Maharashtra have opted to export sugar using third party

quota at much below the MSP.

Record sugar production has not only increased the carrying cost, but mills are also forced

to keep sugar in the open even as the monsoon season has arrived. With tepid demand

for sugar in the domestic market, sugar millers are finding it tough to sell sugar at MSP.

“The monthly sugar quota allocated to the state has been lapsing almost every month. As

such, selling sugar on third party export quota over and above their own export quota,

helped the mills liquidate the excess sugar with them,” said sugar broker Abhijit Ghorpade.

It is estimated that Maharashtra mills sold 3-4 lakh tonnes of sugar under third party export quota at Rs

28/kg to Rs 28.50/kg. Government has issued export quota to every mill. Those who do not want to

export sugar under their own quota, are allowed to sell the quota to others. With the 2018-19 sugarcane

crushing season at its fag end, the industry expects total sugar production in the country to touch 330

lakh tonnes. With a carry forward stock of 104 lakh tonnes, total availability of sugar will be 234 lakh

tonnes.

Excluding local consumption of 26 lakh tonnes and export of 35 lakh tonnes, India will have a record

opening stock of 139 lakh tonnes when the new crushing season begins on Oct 1, 2019.

During his meeting with officials of the PM’s office, Dilip Walse Patil, president, National Co-operative

Sugar Factories Federation (NCSFF), said the federation has sought extension for the scheme of

making buffer stock of 30 lakh tonnes of sugar and demanded that the stock volume should be raised to

50 lakh tonnes to help support sugar prices, by removing excess from the supply chain. The industry

body has also demanded that MSP of sugar should be increased from the present level of Rs 31/kg. “We

have also dwemanded that North India and South India should have separate minimum selling price,”

said Walse Patil.

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