After setting a new record in exports, sugar companies are now looking up to the Centre for the release of ₹5,600 crore, the promised export subsidy, as of August-end. The dues are in addition to the ₹2,500 crore in receivables from the government towards buffer stock and interest subvention schemes.

Armed with the export subsidy, sugar companies have registered a record shipment to tide over the perennial oversupply situation in the domestic market. Despite Covid pangs, sugar exports from India had touched a new high of 5.5 million tonnes till August, against 3.8 million tonnes logged in the same period last year.

The previous highest export of 4.9 million tonnes was logged in sugar season (October to September) 2008. The increase in exports was also supported by the depreciation of the rupee.

It being an essential commodity, exports of sugar continued despite the strict lockdown imposed in March.

Large sugar companies such as Balrampur Chini Mills and Dalmia Bharat Sugar and Industries made the most of the surge in overseas demand on the back of lower production in Thailand, Indonesia and Malaysia.