Sugar mills sign contract to export 30 lakh tonnes so far in 2021-22 mkt year: Govt

Sugar mills have contracted to export 30 lakh tonnes of sugar in the current 2021-22 marketing year, the government on Wednesday said.

In a written reply to the Lok Sabha, Minister of State for Food and Consumer Affairs Sadhvi Niranjan Jyoti informed that about 70 lakh tonnes of sugar were exported in 2020-21 season (October-September) as against 59.60 lakh tonnes in the previous year.

''Due to global deficit of sugar, prices of sugar in the international market are now stable due to which export of sugar is presently viable even without extending assistance; contracts of about 30 lakh tonnes for export of sugar have already been signed in current sugar season 2021-22,'' the minister said.

Further, to facilitate export surplus sugar from country, custom duty on export of sugar has been reduced to zero, she added.

''The central government, with a view to facilitate export of sugar thereby improving liquidity of sugar mills enabling them to clear cane price arrears of farmers has extended assistance to sugar mills in sugar seasons 2015-16, 2017-18, 2018-19, 2019-20 and 2020-21.

''An amount of approximately Rs 12,900 crore has been released to various sugar mills on account of assistance to facilitate export of sugar since sugar season 2015-16. As a result, about 16.5 lakh tonnes, 6.2 lakh tonnes, 38 lakh tonnes, 59.6 lakh tonnes and 70 lakh tonnes have been exported in sugar seasons 2015-16, 2017-18, 2018-19, 2019-20 and 2020-21 respectively,'' Jyoti said.

The minister said the country's sugar production is estimated to be around 308 lakh tonnes in 2021-22 after discounting diversion of 35 lakh tonnes of sugar to ethanol. The domestic consumption is estimated at 270 lakh tonnes in current sugar season 2021-22.

In order to liquidate surplus sugar stock, Jyoti said the government is encouraging sugar mills to export surplus sugar and to divert surplus sugarcane/sugar to ethanol.

During the previous sugar season 2020-21, about 70 lakh tonnes of sugar has been exported and approximately 22 lakh tonnes of sugar has been diverted to ethanol.

''In past four sugar seasons 2017-18, 2018-19, 2019-20 and 2020-21, about Rs 35,000 crore revenue has been generated by sugar mills/distilleries from sale of ethanol to Oil Marketing Companies (OMCs) which has helped in clearing cane price arrears of farmers,'' the minister said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)