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ISMA terms govt's decision to cap sugar exports at 10 million tonnes in 2021-22 as ‘abundant caution’

26 May 2022 Evaluate

Terming the government’s decision as an ‘abundant caution’, sugar industry body -- Indian Sugar Mills Association (ISMA) has 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.

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) 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.

ISMA Vice President Palani G Periasamy said ‘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’. He ruled out any adverse impact of this decision on price realisation of millers.

He said the decision would not have any impact on domestic supply and prices situations, which he felt were comfortable. He added that the government's decision is also aimed at achieving 20 per cent blending of ethanol with petrol by 2025. He said the government could have waited for some more time on the export policy.

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