Even as the sugar season 2021-22 is yet to be over, the export of the sweetener has already reached the “historically highest” level. Data from the Ministry of Consumer Affairs, Food & Public Distribution shows that at least 78 lakh metric tonnes (LMT) of sugar has already been exported, surpassing last year’s number. The union government imposed restrictions on sugar export from Wednesday.
On May 25, the Centre announced that it will allow the export of sugar up to 100 LMT with a view to maintaining the domestic availability and price stability during the sugar season 2021-22. The sugar marketing year runs from October to September. In the current sugar season 2021-22, contracts for export of about 90 LMT have been signed and about 82 LMT of sugar has been dispatched from mills for export. The ministry has termed the export in the current sugar season 2021-22 as “historically highest”.
“This year India has produced 355 LMT of sugar after discounting diversion of about 35 LMT of sugar to production of ethanol, highest in the world. India is the second largest exporter of sugar. Total export should be about 100 LMT in the current sugar season 2021-22,” the ministry said.
As per an order issued by the Directorate General of Foreign Trade (DGFT), with effect from June 1, the export of sugar will be allowed with specific permission of the Directorate of Sugar, Department of Food & Public Distribution. The decision came in light of record exports of sugar. India has been the highest producer and the second-largest exporter of sugar in the world in the current year.
As per the ministry data, in sugar seasons 2017-18, 2018-19, and 2019-20, only about 6.2 LMT, 38 LMT, and 59.60 LMT of sugar was exported. In sugar season 2020-21, against a target of 60 LMT about 70 LMT was exported.
The average monthly consumption of sugar in India is around 23 LMT. The restrictions were imposed to ensure that the closing stock at the end of sugar season (September 30, 2022) remains 60-65 LMT, which is 2-3 months’ stock required for domestic use.
Crushing in the new season starts in the last week of October in Karnataka, in the last week of October to November in Maharashtra, and in November in Uttar Pradesh. So generally, up to November, the supply of sugar takes place from the previous year’s stock.
The number of operational sugar mills this season was 522.
“The country has been the top consumer of sugar in the world with about 278 LMT of sugar consumption in the current sugar season. Consumption of sugar in India is consistently increasing at nominal growth of 2-4% per annum. Per capita sugar consumption in India is about 20 Kg which is less than the global average,” an official statement reads.
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