PremiumThe sugar supply is seen to be lower with an opening balance of 6 million tonne in the next season and there is also a possibility of higher diversion of cane for ethanol.
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The sugar exports in India are most likely to plunge by 28.57 at around 8 million tonne in the 2022-23 season on expected lower opening balance stock and higher diversion for ethanol.
However, only after assessing the price situation once the sugarcane crushing operation begins, the decision on to permit export under an open general licence or the prevailing quota system will be made, a senior official said.
The sugar season normally starts from October to September, while the cane crushing season generally starts in October-November and continues till mid-April. Sugar exports are estimated to be at 11.2 million tonne in the current season.
"Overall sugar output is expected to be good, but exports will be lower next season," the official said.
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Adding more, the official said that the sugar supply is seen to be lower with an opening balance of 6 million tonne in the next season and there is also a possibility of higher diversion of cane for ethanol.
India had an opening balance of sugar between 8-10 million tonne in past few years, however, it is expected to be 6 million tonne in the 2022-23 season.
Apart from this, the diversion of cane for ethanol making is likely to be higher in 2022-23 than the current season, as about 4.5-5 million tonne of sugar is expected to be diverted for ethanol next season against 3.5 million tonne this season.
The country's total sugar production is estimated to be higher at 40 million tonne in the 2022-23 season when compared to 39.5 million tonne in the current season, the official said. In states like Maharashtra and Karnataka, the prospect of sugarcane crop has brightened owing to better rains. Similar is the situation in Uttar Pradesh.
With PTI inputs.