Revamping the Sugar Export System: A Call for Reform

The All India Sugar Trade Association (AISTA) urges the government to allocate export quotas directly to mills engaged in exports, as the current system hinders trade and profitability. They also criticize the 50% export duty on ethanol, which has not improved local supply. Restricted exports impact mills' ability to support farmers.

The All India Sugar Trade Association (AISTA) has called on the government to rethink its sugar export quota system. The current approach allows mills to sell their export rights, contributing to unexported sugar volumes and impacting profits, AISTA said on Wednesday.

Under the present system, quotas are distributed based on past production across mills, many of which are not inclined or able to export. By reallocating these quotas only to willing and capable mills, AISTA believes the export process could see improvement.

Additionally, the association criticized the 50 percent export duty on ethanol, in place since early this year, which has not increased domestic supply as hoped. AISTA argues that such restrictions are damaging to mills that do not have distilleries, impairing their capacity to process molasses and remunerate sugarcane farmers adequately.

(With inputs from agencies.)