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According to a report published by , the central government may consider imposing stock limits on sugar trading if all entities do not disclose their lists by October 17. Business Standard.
India may shift sugar exports from ‘restricted’ to ‘prohibited’ category for the entire 2023-24 (October-September) season as it faces the weakest monsoon in five years on sugarcane crops in key producing states like Maharashtra and Maharashtra. Concerned about the impact of. Karnataka, two government officials said.
Sugar mills can currently apply for export quota under the restricted category, but moving to the prohibited category would mean a complete export ban.
“Sugar production in the 2023-24 sugar season is expected to fall to 30 million tonnes (MT) against domestic consumption of 27.5-28 million tonnes due to compromised monsoon rains due to El Nino in August,” one of the officials said. Is.”
“However, El Nino is projected to strengthen through 2023-24, which may intensify dry conditions during the next sugar season. This may lead to further decline in sugar production during the 2024-25 season,” the official said.
The El Nino weather pattern made August the driest in more than a century. Precipitation during the month was 161.7 mm, the lowest since 1901.
India, which overtook Brazil to become the world’s largest sugar producer and second-largest exporter in the 2021-22 season, imposed export controls in October last year, adopting a mill-wise quota system. By the end of the 2022-23 crop year, local sugar mills exported 6.2 million tonnes of sugar.
On June 2, Mint reported that the Department of Food and Public Distribution cannot give a free hand to sugar mills to export sugar to ensure domestic supply and keep prices under control.
Subsequently, on August 29, Mint reported that the government will review its sugar export policy, which is currently under the restricted category, in October when the state cane commissioners come up with their crop estimates for the 2023-24 season.
In the 2022-23 season, India is estimated to produce 32.7-32.8 million tonnes of sugar after diversion of 4.3 million tonnes of the commodity for ethanol production, ending the season with 5.5-6 million tonnes in stocks.
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Updated: October 17, 2023, 09:43 am IST
