Export Sugar Cane

Sugar mills have surpassed the export target of Six (mt) to Seven (mt)

"Sugarcane Signed contract"

In comparison to the export target of six million tonnes (mt), sugar mills have entered into contracts for approximately seven million tonnes (mt) in the current sugar season, with over six million tonnes of sugar already exported, according to an official statement issued on Thursday.

As per the statement issued, ‘Some of the sugar mills have also signed forward contracts for exports during the upcoming new sugar season, which begins in the month of October. Sugar exports have aided in maintaining demand-supply balance and stabilizing domestic ex-mill sugar prices.’

Also Read: Sugar mills have paid sugarcane farmers 86% Fair and Remunerative Price

Sugar mills purchased sugarcane worth 91,000 crores in the current season, which ended in September, according to a statement issued by the Ministry of Consumer Affairs, Food, and Public Distribution.

According to a statement, ‘During the current sugar season, sugar mills purchased Sugarcane worth a record ₹90,872 crore and paid farmers about ₹81,963 crores in cane dues. As of August 16, only ₹8,909 crores in cane arrears remained unpaid. The rise in export and diversion of sugarcane to ethanol production has accelerated cane price payments to farmers.’

Long-term solution

In comparison, sugar mills spent ₹75,845 crore on Sugarcane the previous season. To resolve a long-term solution to the problem of excess sugar, the government is encouraging sugar mills to divert excess Sugarcane to ethanol mix with gasoline. This not only serves as a green fuel, but it also saves foreign currency on crude oil imports.

The revenue generated by mills from the sale of ethanol also assists sugar mills in settling cane price arrears owed to farmers. Approximately 3.37 lakh tonnes (lt) and 9.26 lt of sugar were diverted to ethanol in the 2018-19 and 2019-20 seasons, respectively.

Also Read: Sugar Millers and Administration Worry about Collapsing Sugar Demand

Over 20 lt is likely to be diverted during the current sugar season. According to the statement, approximately 35 lt of sugar will be diverted during the upcoming sugar season, with this figure expected to rise to 60 lt by 2024-25.

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