-> Looking to increase export cap of 10MT imposed by the government
-> International sugar prices are firm
-> Need flexi fuel cars to achieve 20% ethanol blending target
Last year India produced 311.92 lac tons of sugar (after diversion of about 20 lac tons of sugar for the production of ethanol).
Availability in domestic market, stable prices top priority: India on sugar export cap
India’s sugar exports rise 15 times to 70 lakh tonnes in last 4 years
Sugar sales by end of April 2022 have been estimated at 160.05 lac tons vs 152.61 lac tons in the corresponding period last year. ISMA estimates domestic sugar consumption in the current season to be at 275 lakh tonnes vs 265.55 lakh tonnes last year.
As far as the stock situation is concerned, the closing stock of sugar at the end of 2019-20 stood at 10.7 million tonnes which reduced to 8.3 million tonnes in the subsequent year. It is estimated to stand at 7.1 million tonnes at the end of this sugar season. A declining trend indeed! We exported about 5.95 million tonnes of sugar in 2019-20 which rose to 7.1 MT in 2020-21 and is expected to cross the 9 MT mark this year.
Ethanol has clearly been a game-changer for the Indian sugar industry. 10% ethanol blending target has already been achieved. In fact, ethanol blending target has been achieved 5 months before the deadline. High ethanol blending in petrol saved Rs 41000 cr forex reserves. India is targeting 20% ethanol blending by 2025.