Sugar mills seek next year's export policy to cash in on firm futures

Sugar millers have urged the government to announce export policy for the next sugar season that begins from October 1, allowing mills to sign forward contracts at a time when international futures prices of raw sugar are firm.

Industry body Indian Sugar Mills Association (ISMA), in a letter to the food ministry, has requested to allow export of eight million tonnes of sugar in 2022-23. "Right now, Thailand and Brazil are taking benefit of the firm international prices," said Aditya Jhunjhunwala, president of ISMA. "If we can contract now for the next season, we can begin exports from October."

Depreciation of the rupee will also help get better realisation for the mills. ISMA has suggested that the government can impose a time limit from October 1 till April for the first phase of exports so as to expedite exports during the crushing season, which can help in making timely cane payment to the farmers. Alternatively, ISMA has suggested to allow eight million tonnes of exports based on the maximum admissible export quota (MAEQ) system that was used in 2020-21.