AMN / WEB DESK
The Union food secretary Sudhanshu Pandey has said that government capping sugar exports at 10 million tonnes from June 1 will ensure supplies during the festival season in October and November.
Sugar prices are “more stable” when compared to other commodities, but the decision to curb exports was taken to prevent any spike in retail prices amid global shortage of the commodity, Pandey said at a press conference. India’s per month consumes around 2-2.5 million tonnes of sugar.
India on Tuesday allowed duty-free imports of 2 million tonnes each of soy oil and sunflower oil for the current and next fiscal years ending March.
Pandey said India will this year be the world’s largest sugar producer, toppling Brazil. India has notified capping of sugar exports to 10 million tonnes in the ongoing 2021-22 marketing year (October-September).
Shipments will be allowed with special permission between June 1 and October 31. Exporters have to on a daily basis keep the government informed about their outbound shipments so that proper monitoring can be done.
“The country’s sugar exports this year are the highest ever. Already 9 million tonnes of sugar have been contracted, out of which 7.5 million tonnes have been exported,” he said. Sugar exports stood at a record 7 million tonnes in the 2020-21 marketing year.
About 6-6.2 million tonnes of sugar would be the closing stock at the end of the current marketing year, just the optimum level to meet the domestic requirement in October-November, he said.
Currently, sugar prices both in wholesale and retail markets are more stable when compared to other commodities. The restrictions on sugar exports will prevent speculation and undue price spike, he said.
Stocks continue slide
Sugar stocks fell sharply on Wednesday, a day after the government imposed restrictions on sugar exports from June 1.
Shares of Dalmia Bharat Sugar and Industries plummeted 13.40 per cent, Dwarikesh Sugar tumbled 9.38 per cent, Uttam Sugar Mills plunged 9.30 per cent and Balrampur Chini Mills tanked 8.56 per cent on the BSE.
Also, Avadh Sugar & Energy dived 8.04 per cent, Shree Renuka Sugars declined 6.69 per cent and Mawana Sugars dipped 4.97 per cent.