Sugar exports will continue, selling price increase is considered; Important information about the center

New Delhi : Secretary Sanjiv Chopra said on Tuesday that there is no proposal to ban sugar exports to boost domestic supply and the government is considering the industry’s demand to at least increase sales. Sugar prices are stable and ample domestic supply is unlikely to lead to further price hikes.

A committee of government officials has been set up to consider ways to utilize the excess ethanol production capacity, including increasing the ethanol blend in petrol from the current 20 per cent. There is no proposal to reduce import duty on edible oil. The wheat crop which is currently being harvested is good this year. Due to recent rains, the government may relax the quality criteria for procurement of foodgrains.

At present there is no proposal to ban sugar export, said Chopra while replying to a question during the conference here. He was asked about reports of a possible export ban to boost domestic supply. He said the ongoing conflict in West Asia has strengthened global prices. This has improved India’s export prospects. If exports fall short of the sanctioned amount, ending sugar stocks will be higher.

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As a result, there will be flexibility to divert more sugar to ethanol production in subsequent marketing years. Regarding the industry’s demand to raise the minimum selling price of sugar from Rs 31 per kg, he said the food ministry is considering the proposal.

Sugar prices stable

Ethanol blending program has resulted in substantial foreign exchange savings of Rs 1.75 lakh crore since 2014. Sugar prices have remained stable. I don’t expect any big increase or hike in prices. On the issue of sugarcane arrears, he said the situation is under control and the sugar mills are expected to pay the farmers as cash flows from exports and ethanol blending programmes.