India exports 7.5 mn tonnes sugar till May 18 in current marketing year

India has exported 75 lakh tonnes of sugar till May 18 in the current marketing year ending September, the Food Ministry mentioned on Thursday.

Sugar marketing year runs from October to September.

“Export of sugar in current sugar season 2021-22 is 15 occasions of export as in comparison with export in sugar season 2017-18,” the ministry mentioned in a press release.

The main importing nations are Indonesia, Afghanistan, Sri Lanka, Bangladesh, UAE, Malaysia and African nations.

In 2017-18, 2018-19, 2019-20 marketing years, about 6.2 lakh tonnes, 38 lakh tonnes and 59.60 lakh tonnes of sugar had been exported, respectively.

In 2020-21, about 70 lakh tonnes of sugar have been exported.

“About Rs 14,456 crore (have been) launched to sugar mills in previous 5 years to facilitate export of sugar and Rs 2,000 crore as carrying value for sustaining buffer inventory,” the assertion mentioned.

Millers have contracted for export of about 90 lakh tonnes of sugar in 2021-22. Out of which, 75 lakh tonnes have been exported till May 18.

This is with out announcement of any export subsidy.

The ministry mentioned it’s encouraging sugar mills to divert extra sugarcane to ethanol.

To increase agricultural economic system, scale back dependence on imported fossil gas and save overseas trade on account of crude oil import invoice, the federal government has mounted goal of 10 per cent mixing of gas grade ethanol with petrol by 2022 and 20 per cent mixing by 2025.

Till year 2014, ethanol distillation capability of molasses-based distilleries was solely about 215 crore litres.

In the previous eight years, the capability of molasses-based distilleries has been elevated to 569 crore litres.

The capability of grain-based distilleries has elevated to 298 crore litres from 206 crore litres in 2014.

Thus, whole ethanol manufacturing capacities have been elevated from 421 crore litres to 867 crore litres in simply eight years.

The provide of ethanol to OMCs was solely 38 crore litres with mixing ranges of just one.53 per cent in Ethanol Supply Year (ESY) 2013-14.

Production of gas grade ethanol and its provide to OMCs have elevated by 8 occasions from 2013-14 to 2020-21.

In ethanol provide year 2020-21 (December – (*18*)), about 302.30 crore litres of ethanol have been equipped to OMCs thereby, attaining 8.1 per cent mixing ranges.

In the current ESY 2021-22, about 186 crore litres ethanol have been blended with petrol till May 8, 2022, thereby attaining 9.90 per cent mixing.

“It is anticipated that in current ethanol provide year 2021-22, we will probably be attaining 10 per cent mixing goal,” the assertion mentioned.

The authorities has additionally allowed manufacturing of ethanol from B-heavy molasses, sugarcane juice, sugar syrup and sugar.

In sugar seasons 2018-19 , 2019-20 and 2020-21, about 3.37 lakh tonnes, 9.26 lakh tonnes and 22 lakh tonnes of sugar had been diverted to ethanol, respectively.

In 2021-22, about 35 lakh tonnes of extra sugar could be diverted to ethanol.

“By 2025, it’s focused to divert greater than 60 lakh tonnes of extra sugar to ethanol,” the assertion mentioned.

This would resolve the issue of excessive inventories of sugar and enhance liquidity of mills.

Since 2014, greater than Rs 64,000 crore income has been generated by sugar mills and distilleries from sale of ethanol to OMCs which has helped in making well timed fee of dues of farmers.

In 2020-21, sugarcane price Rs 93,000 crore was bought by mills.

In the 2021-22, sugarcane price Rs 1.10 lakh crore is more likely to be bought by sugar mills.

For the current sugar season 2021-22, out of whole cane dues payable of Rs 1,06,849 crore, about Rs 89,553 crore have been paid and solely Rs 17,296 crore are pending as on May 17, thus 84 per cent of cane dues have been paid.

The home ex-mill costs of sugar are additionally now steady and are in the vary of Rs 32-35 per kilogram.

The common retail value of sugar in the nation is about Rs 41.50 per kg and is more likely to stay in the vary of Rs 40-43 per kg in the approaching months.

(Only the headline and film of this report might have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)