Mills have signed contracts to export 7 mt of sugar: Centre

Towards the export concentrate on of 6 million tonnes (mt), sugar mills have entered into contracts for about seven mt in the recent sugar period and around 6 mt of sugar have presently been exported, an official assertion said on Thursday.

“Some sugar mills have also signed ahead contracts for exports in ensuing sugar period starting Oct. Export of sugar has served in maintaining demand-supply balance and stabilising domestic ex-mill price ranges of sugar,” the assertion said.

According to the assertion, issued by the Ministry of Client Affairs, Food stuff and Community Distribution, sugar mills ordered sugarcane value ₹91,000 crore in the recent period ending September.

“In the recent sugar period, sugarcane value a report ₹90,872 crore has been ordered by sugar mills and about ₹81,963 crore cane dues have been paid out to farmers. Only ₹8,909 crore cane arrears are pending as on August 16. Improve in export and diversion of sugarcane to ethanol has expedited cane value payments to farmers, the assertion said.

Lasting option

In comparison, sugar mills ordered sugarcane value ₹75,845 crore in the prior period.

To come across a long term option to offer with the issue of extra sugar, the govt is encouraging sugar mills to divert extra sugarcane to ethanol which is blended with petrol. This not only serves as a inexperienced gasoline but also saves foreign exchange on account of crude oil import.

The revenue created from sale of ethanol by mills also assists sugar mills in clearing cane value dues to farmers. In 2018-19 and 2019-twenty seasons, about 3.37 lakh tonnes (lt) and 9.26 lt of sugar, respectively, were being diverted to ethanol.

In the recent sugar period, around twenty lt is likely to be diverted. In the ensuing sugar period, about 35 lt of sugar is estimated to be diverted, the assertion said, adding that this could go up 60 lt by 2024-twenty five.