Govt reallocates unused sugar export quota of 6,50,000 tonnes for current marketing year

24 Feb 2020 Evaluate

Joint Secretary in the Food Ministry Subodh Singh said that the government has reallocated unused export quota of 6,50,000 tonnes of sugar in the ongoing 2019-20 marketing year (October-September) under the Maximum Admissible Export Quota (MAEQ) scheme. In order to help deal with the surplus sugar, the government has allowed export of 6 million tonnes of sugar under the quota for the current year. He said some of the mills have not been able to export their quota this year. Already, some mills have surrendered their export quota of 2,50,000 tonnes.

Total sugar exports could reach 5 million tonnes in the current marketing year on higher global demand. India has exported 3.8 million tonne of sugar during 2018-19 marketing year against the mandatory quota of 5 million tonne. Singh said the country's total sugar production is expected to touch 27 million tonnes this year, lower than 33 million tonnes achieved in the last two years. Mills have already produced 16-17 million tonnes of sugar so far.

On ethanol blending with petrol this year, he said the country will be able to achieve last year's level of 5 per cent comprising 1.9 billion litres, while the policy has been for 10 per cent. It will be difficult this year as far as ethanol blending is concerned as sugarcane crop in Maharashtra has fallen substantially. However, they will manage 5 per cent blending in 2019-20. Currently, the country has an ethanol production capacity of 355 crore litres against the requirement of 511 crore litres from oil marketing companies (OMCs).

With an aim to boost ethanol production, Singh said the government has approved 362 projects with an investment of Rs 18,600 crore for enhancing additional ethanol production capacity of 400 crore litres in the next two years. He added that this will take total ethanol production capacity to 755 crore litres, which will help the country achieve 20 per cent ethanol blending with petrol by 2030.

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