Following the shipment of 6 million tonnes (MT) of sweetener, the government has reportedly decided against allowing a second batch of sugar exports in the current season (October-September). According to sources, the choice was made to prevent a spike in domestic sweetener prices in the upcoming months. Maharashtra and Karnataka’s lower yields have hurt sugar production.
As per the reports, officials want to ensure that in the coming months, the supplies aren’t disrupted by lower output. Additionally, they have decided not to add to the existing sugar export quota. After meeting the requirements for ethanol production, the industry had earlier predicted that the nation could export about 8 MT of sugar in the 2022–2023 season. Sugar retail inflation in April 2023 was 1.57%. In November and December 2022, sugar inflation was negative.
Due to the significant increase in demand for dairy products, ice cream, and cold drinks during the summer, sugar prices, which have been stable for many years, are predicted to rise. The officials also said that they are closely keeping tabs on the process because they want to avoid price hikes as it may lead to lower output. Compared with last season, India recorded export of 11.2 MT of sugar.
The major exporters of sugar are Indonesia, Bangladesh, the UAE, Djibouti, Malaysia, Sudan, and Somalia. Sugar exports increased to 7.1 MT in the 2020–21 season. Only about 0.6 MT, 3.8 MT, and 5.9 MT of sugar were exported in the sugar seasons 2017–18, 2018–19, and 2019–20. In 2020–2021 and 2021–2022, the government used the maximum admissible export quota (MAEQ) and the open general licence system, respectively.
According to the National Federation of Co-operative Sugar Factories, lower yield in Maharashtra and some areas of Karnataka could result in a 9% decrease in sugar production in the 2022–23 season from 35.9 MT to 32.5 MT. During the months of August through October of last year, the crop was harmed by unfavourable weather conditions like excessive rainfall and a lack of sunlight.
According to the Indian Sugar Mills Association, 31.1 MT of sugar will be produced during the 2022–2023 season, excluding the 4.5 MT that will be used to produce ethanol. Compared to the 32.87.8 MT estimated output from the previous season. Speaking of, Around 27 MT of sugar is consumed domestically each year.
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