New Delhi [India], March 4 : India will have sufficient sugar at the start of the next marketing season, which starts in October 2025, Deepak Ballani, Director General of Indian Sugar and Bio-Energy Manufacturers Association (ISMA), told ANI.
In a telephone interview, Ballani explained India would have some 60-odd lakh tonnes of sugar available as opening stock for the next marketing season, against the standard norms of 50-55 lakh tonnes.
According to him, the opening stock of the 2024-25 marketing season was 80 lakh tonnes. The sugar production estimate for 2024-25 is 272 lakh tonnes, which is some 15 per cent lower year-on-year from 320 lakh tonnes produced in 2023-24.
The opening stock of 80 lakh tonnes and 272 lakh tonnes of estimated production will bring the total sugar availability to 352 lakh tonnes in 2024-25. India consumes around 280 lakh tonnes of sugar annually. This will make available about 60 lakh tonnes as the opening stock for the next season.
After restricting the sugar trade in the 2023-24 season, the central government allowed sugar producers to export 1 million tonnes of sweetener on January 21 this year.
The government restricted sugar exports in the previous year, presumably to maintain price stability in domestic markets.
"Even after the 10 lakh tonne exports, India will close the season at 60 lakh tonne. Normally, the government wants to keep 50-55 lakh tonnes as a normal closing stock. Even after allowing exports, we will still have a higher closing stock. That is why the government has allowed the exports," Ballani said.
Sugar marketing season in India runs from October to September.
"We have already done export (physical plus contracts) of about 600,000-700,000 tonne. We have a large window till September...and I think in another two months we shall be able to finish our 1 million export quota," Ballani said.
During the interview, the ISMA DG raised concerns about sugar prices in India and how they have lagged the pace at which the Fair Remunerative Price has moved.
At the moment, the ex-mill price of sugar in Maharashtra is Rs 3,800 per quintal, and in Uttar Pradesh at Rs 4,000-4,050 per quintal.
Ballani expects the domestic sugar market to be firm in the near term, with a price range of Rs 4000-4100 per quintal.
According to Ballani, sugar's FRP has increased at a CAGR of 5.5 percent since 2014. The government sets the FRP every year, and the mills pay farmers the FRP.
But the price of sugar has increased by only 2 percent CAGR over the past 10 years, he said. The average retail price of sugar has been almost stagnant for the past two years.
He also pointed out that the Minimum Selling Price of sugar has not been revised in the last five years. In 2019, it was set at Rs 31 per kg, against the estimated cost of sugar production of Rs 41.
"We are still below the cost of production. For us to maintain our payment to the farmers, for investments, to make sure our industry is viable, we need a decent and reasonable sugar price as well," he said.
He argued that India pays the highest rates to sugarcane farmers in the world but realises the lowest prices for the end product-sugar.
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