According to a report from the Department of Food and Public Distribution, India was able to successfully maintain a steady supply of sugar at competitive rates during the whole Sugar Season 2022–23, which ends on September 30, 2023.
The nation has surpassed a sugar production threshold of 330 LMT (Lakh Metric Tonnes), excluding the diversion of roughly 43 LMT for ethanol production, thanks to prompt government interventions. India is therefore anticipated to produce 373 LMT of sucrose overall, which would be the second-highest yield in the previous five sugar seasons.
India has set a ceiling on its sugar exports at about 61 LMT in order to put its citizens’ welfare first and enable fast payments to cane producers. By the end of August 2023, the optimal sugar stockpile will be around 83 LMT as a result of this strategic choice. Domestic consumers will have access to competitively priced sugar for the foreseeable future thanks to this stockpile, which is estimated to be adequate to cover the country’s sugar consumption demands for about three and a half months.
According to predictions made by the Indian Meteorological Department, the monsoon has continued to behave normally in September 2023. Timely rainfall has also aided the Maharashtra and Karnataka sugarcane growing regions, which is encouraging for increased crop yields and sugar output in the approaching Sugar Season 2023–24. State Cane Commissioners have been assiduously tracking crop status, including cane acreage, yield forecasts, and anticipated sugar production, in all states that produce sugar. Any choices relating to the sugar export policy for the following season will be made in light of this information.
The cornerstone of India’s sugar policy is its consistent dedication to securing domestic sugar availability, diverting ethanol production, and keeping an acceptable closing balance at the end of each season. Only excess sugar is designated for export, if there is any. This strategy has successfully kept sugar prices stable on the domestic market and demonstrates that Indian consumers have access to sugar at reasonable prices without the need for government subsidies for sugar mills.
Additionally, the Indian government has started initiatives to gather data on dealers from various sugar mills as a preventative step. This project attempts to provide a reliable system for tracking sugar stocks across the nation’s various regions. Ample sugar stocks have been confirmed by industry associations, and they have praised the attainment of a favorable closing balance at the end of the season.More than Rs1.07 crores, or 94% of the cane dues for the current season, have already been paid out by mills as a consequence of the government and industry partners’ joint efforts. This success fosters a positive perspective for the industry by increasing farmers’ trust in the sugar sector.
The country’s attempts to keep a balance between domestic consumption, ethanol production, and exports have helped to keep sugar prices stable and the industry financially sound.