Food Secretary Sudhanshu Pandey said in New Delhi that the government will increase the sugar export limit to 1.2 million tonnes.
To maintain domestic supply and price stability, the government in May restricted sugar exports to 10 million tonnes for the marketing year. Since then, the industry has been demanding an increase in the export cap.
The food ministry reported earlier this week that sugar mills have already reached their annual maximum export limit of 10 million tonnes, an all-time high, and that shipments are likely to rise to 11.2 million tonnes.
Sugar shipments increased from 5.96 million tonnes in the previous year to 7 million tonnes in 2020-21.
According to industry group Indian Sugar Mills Association (ISMA), India’s sugar production may decline to 35.5 million tonnes in the 2022-23 marketing year, due to the crop being diverted for ethanol production. In the current marketing year ending September, 36 million tonnes of sugar is expected to be produced.
Before the diversion of the crop to ethanol production, sugar production is projected to grow north of 39.9 million tonnes in 2022-23, as opposed to the current marketing year of 39.4 million tonnes in 2021-22.