ISMA stated that the sugar production this season will be sufficient for meeting annual domestic consumption which is estimated at around 27.8 MT.

 

 

Area under sugar cane in the country is estimated to be around 5.7 million hectare in 2023-24 season. 

 

However the trade body stated that projected output includes diversion of sugar towards ethanol production and the quantum of output diverted for ethanol in the current season will be declared only after declaration of procurement price for ethanol supply year 2023-24 (December-October).

 

Trade sources had earlier stated that around 4.5 MT of sugar will be diverted to ethanol production in the current season.

 

That means after earmarking 4.5 MT for ethanol production, hardly any sugar will be available for exports.that the government is unlikely to provide quota for sugar exports 2023-24 season.

 

In the 2022-23 sugar season, 6 MT of sugar was exported.

 

The government recently extended restrictions on sugar — – raw, white, refined and organic exports beyond October 31 till further order.

 

In August, ISMA had stated that the sugar production in the current season is likely to be lower by 3.41% at 31.68 MT, which the food ministry had stated was ‘too premature’.

 

On sugar availability following reports of expected fall in production due to lack of monsoon rains in August had impacted yield in the key producing states – Maharashtra and Karnataka , food secretary Sanjeev Chopra recently stated that there should not be any worry as the country will have enough stock to meet the demand.

 

At the beginning of the current sugar season on October 1, mills had 5.7 MT of stocks of sweetener while a year ago carry forward stock was 7 MT.

 

In  2022–23, the government achieved target of achieving 12% ethanol blending with petrol. The target for 2023–24 is set at 15% of blending.

 

In June, the government had approved a 3% hike in fair and remunerative price (FRP) of sugarcane to be paid to farmers for the 2023-24 season to Rs 315/a quintal in comparison to previous year. Increase in FRP applicable from the crushing season commencing from October 1 subject to base sugar recovery of 10.25%.

 

ISMA had earlier urged the government to increase the minimum selling price (MSP) of sugar from the current level of Rs 31/kg to at least Rs 36-37/kg in commensurate with hike in the FRP of cane.

 

In June, 2018 the government had introduced the concept of MSP of sugar so that industry could get at least the minimum cost of production of sweetener so as to enable them to clear cane price dues of farmers.