ISMA Calls for Sugar Export to Offset Surplus

ISMA recommends the Indian government permit the export of 20 lakh tonnes of sugar due to an estimated surplus of 36 lakh tonnes by September 30th, 2024. Despite an opening stock of 56 lakh tonnes and a forecasted consumption of 285 lakh tonnes, ISMA projects a closing stock of 91 lakh tonnes

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The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has recommended that the government allow the export of 20 lakh tonnes of sugar in the current season. ISMA’s suggestion comes as sugar production in India has met expectations, with an estimated output of close to 320 lakh tonnes by the end of the season. Despite an opening stock of approximately 56 lakh tonnes and a forecasted domestic consumption of 285 lakh tonnes for the season, ISMA projects a significantly higher closing stock of 91 lakh tonnes by September 30th, 2024.

This surplus, amounting to 36 lakh tonnes above the normative stock of 55 lakh tonnes, could lead to additional costs for sugar mills due to idle inventory and carrying costs. ISMA also anticipates a moderate crushing season in 2024-25, citing factors such as an early announcement of an increased Fair and Remunerative Price (FRP) for sugarcane, favorable pre-monsoon rainfall, and forecasts of an above-normal monsoon. These factors are expected to result in a higher stock next year.

Permitting the export of 20 lakh tonnes of sugar, ISMA argues, would ensure sufficient stocks for domestic consumption and the Ethanol Blending Program (EBP), as well as improve the financial liquidity of sugar mills and enable timely payments to farmers.