Govt's move to put sugar export cap of 10 mn tonne 'abundant caution': ISMA

Sugar industry body ISMA on Wednesday said the government's decision to cap sugar exports at 10 million tonnes in 2021-22 marketing year ending September will not have a significant impact as millers are likely to ship around 9-9.5 million tonnes of sweetener only.

Indian Sugar Mills Association (ISMA) Vice President Palani G Periasamy said the government has taken the decision as an "abundant caution".

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The Centre has notified capping of sugar exports at 10 million tonnes in the current marketing year ending September to maintain the domestic availability and price stability. The notification was issued by the Directorate of General of Foreign Trade (DGFT) late at night on May 24.

Sugar exports will be allowed with effect from June 1 till October 31 this year or till further order, whichever is earlier, with specific permission of the Directorate of Sugar under the Food Ministry.

"Normally, we were planning to export around 9-9.5 million tonnes of sugar in the 2021-22 marketing year (October-September). So in that perspective, this cap on sugar exports may not have a significant impact. We have enough supply of sugar in the domestic market," Periasamy told PTI.

He ruled out any adverse impact of this decision on price realisation of millers.

Periasamy said the decision would not have any impact on domestic supply and prices situations, which he felt were comfortable.

The government's decision is also aimed at achieving 20 per cent blending of ethanol with petrol by 2025, he said.

The ISMA Vice President said the government could have waited for some more time on the export policy.

Recently, ISMA had said that it expects over 9 million tonnes of export in the current 2021-22 marketing year, as against 7.19 million tonnes exported in the previous year.

Already 9 million tonnes of sugar have been contracted, out of which 7.5 million tonnes have been exported.

All India Sugar Trade Association (AISTA) Chairman Praful Vithalani welcomed the government's step of capping sugar exports.

"It was AISTA's demand from a long time of keeping 6 million tonnes of closing stock at the end of the season, which is September," he added.