Sugar cos contract 65% of export target of 6 MT

NEW DELHI: Weak provide and agency world costs have helped Indian sugar firms contract 65% of the export target of 6 million tonnes. This achieve in export momentum may even assist millers settle farmers’ cane arrears, which have crossed Rs 16,000 crore, mentioned officers.

“Out of 6 million tonnes, 3.9 million tonnes have already been contracted. Out of that 1.8 million tonnes has been physically despatched from sugar mills,” mentioned a senior meals ministry official, who didn’t want to be recognized.

He mentioned the federal government provides millers a subsidy of Rs 5.83 on each kilogram of export as much as 6 million tonnes. The subsidy quantity is transferred on to farmers’ accounts.

“The more the exports, the faster farmers get their arrears,” mentioned the official. “In less than three months of announcement of export subsidy, millers have contracted 3.9 million tonnes of ensuring transfer of around Rs 2,300 crore to farmers once exports materialise. We still have time till September to complete the remaining 2.1 million tonnes of targeted exports.”

Sugar costs are prone to keep agency, in keeping with International Sugar Organisation, the intergovernmental world organisation for trade promotion, because of the deficit in sugar provide, which has risen to five million tonnes from the sooner estimated deficit of 3.5 million tonnes.

International crude costs are going up. Brazil, which is one of the key world suppliers of sugar, is prone to divert to ethanol as an alternative of sugar, which can work in India’s favour. India has surplus manufacturing to fulfill the worldwide demand even after diverting some amount to ethanol,” mentioned the official.

Sugar manufacturing in 2020-21 is prone to be 9% greater than that final 12 months. According to an estimate by the All India Sugar Trade Association, the output is prone to be 29.9 million tonnes, as towards final 12 months’s manufacturing of 27.40 million tonnes.

(*6*) mentioned the official.

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