The Indian Sugar Mills and Bio-Energy Manufacturers Association (ISMA) is making a strong case for the government to lift sugar export restrictions. Their argument is based on projections that show a significant sugar surplus in the coming years.

ISMA forecasts sugar production for the 2024-25 season at 33.11 million tonnes (MT), only a slight 2% drop from the current year. With an opening stock of 9.05 MT, the net sugar availability is expected to reach 42.35 MT. Domestic consumption is projected at 29 MT, leaving a closing stock of 13.35 MT by September 2025. These figures clearly indicate a surplus that could be tapped for exports.

Deepak Ballani, ISMA’s Director General, emphasizes the benefits of allowing exports. He points out that production will be sufficient to meet both domestic needs and the ethanol blending program. Permitting exports, even just 2 MT in the current season, could help companies reduce carrying costs and ease their interest burden.

The current scenario presents a stark contrast. For the 2023-24 season, the government has not allowed sugar exports, aiming to boost domestic supply and control retail prices. However, the agricultural outlook seems positive, with the sugarcane sowing area slightly higher than last year.

ISMA is also advocating for other changes in the sugar industry. They’re pushing for an increase in the Minimum Sales Prices (MSP) of sugar to match the rise in Fair and Remunerative Price (FRP) paid to farmers. The MSP has remained unchanged since 2018 at Rs 3100/quintal, while the FRP has seen increases.

The government, for its part, has approved an 8% hike in FRP for the 2024-25 season. Officials state that they will consider both consumer and industry interests before making any decisions on exports or pricing.

As the debate continues, the sugar industry eagerly awaits the government’s decision. With ample supply forecasted and potential economic benefits on the table, the case for sugar exports seems increasingly compelling.