27/05/2022

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Mills have signed contracts to export 7 mt of sugar: Centre

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Towards the export goal of six million tonnes (mt), sugar mills have entered into contracts for about seven mt in the latest sugar season and about six mt of sugar have presently been exported, an official assertion said on Thursday.

“Some sugar mills have also signed ahead contracts for exports in ensuing sugar season starting up Oct. Export of sugar has served in protecting demand from customers-source stability and stabilising domestic ex-mill charges of sugar,” the assertion said.

According to the assertion, issued by the Ministry of Purchaser Affairs, Food stuff and Community Distribution, sugar mills obtained sugarcane well worth ₹91,000 crore in the latest season ending September.

“In the latest sugar season, sugarcane well worth a file ₹90,872 crore has been obtained by sugar mills and about ₹81,963 crore cane dues have been paid out to farmers. Only ₹8,909 crore cane arrears are pending as on August sixteen. Improve in export and diversion of sugarcane to ethanol has expedited cane value payments to farmers, the assertion said.

Permanent solution

In comparison, sugar mills obtained sugarcane well worth ₹75,845 crore in the preceding season.

To come across a permanent solution to deal with the dilemma of extra sugar, the govt is encouraging sugar mills to divert extra sugarcane to ethanol which is blended with petrol. This not only serves as a environmentally friendly gas but also will save foreign exchange on account of crude oil import.

The income produced from sale of ethanol by mills also helps sugar mills in clearing cane value dues to farmers. In 2018-19 and 2019-twenty seasons, about three.37 lakh tonnes (lt) and nine.26 lt of sugar, respectively, ended up diverted to ethanol.

In the latest sugar season, about twenty lt is probable to be diverted. In the ensuing sugar season, about 35 lt of sugar is believed to be diverted, the assertion said, incorporating that this could go up 60 lt by 2024-twenty five.