The government denies proposals to export sugar during the 2023–2024 season

Despite constant pressure from the business, the Union administration has ruled against allowing sugar exports for the current season. The Indian Sugar Mills Association (ISMA) has requested that the government permit the export of 10 lakh metric tonnes of sugar; nevertheless, the government has decided to keep export restrictions in place indefinitely.

Despite the industry’s pleas, a top food ministry official told PTI that the government is not presently contemplating sugar exports. The industry is expecting a strong closing stock at the conclusion of the season, which is why this decision was made.

Up until March of the current 2023–24 season, India produced more sugar than 30 million metric tonnes, according to the latest statistics. The government had estimated that sugar output would range from 31.5 to 32 million metric tonnes; however, ISMA has raised its net sugar production forecast for the season to 32 million metric tonnes.

Although the government opposes sugar exports, there are plans to let sugar mills use this year’s surplus B-heavy molasses to produce ethanol. This action demonstrates the government’s attempts to address the oversupply of sugar supplies and encourage the use of sugarcane byproducts for other purposes.

The government’s reluctance to approve requests for sugar exports is indicative of its cautious approach to controlling local sugar supply and striking a balance between the interests of different players in the sugar business. Although the sector keeps pushing for exports to help reduce excess inventory, the government’s major concern is still maintaining the sugar market’s sustainability and stability.