iGrain India - New Delhi. The Union Agriculture Ministry has set a target of production of 47 crore tonnes of sugarcane for the 2024-25 marketing season (October-September), due to which sugar production is likely to decrease.
To maintain sugar production at normal levels, the government may try to limit the use of sugarcane in ethanol production in the next season as well.
If this does not happen, sugar production may decrease. The government is currently in no mood to allow sugar exports and in the next season too, it may give priority to the use of surplus sugar stock in ethanol production instead of exporting it.
Although sugar production during the current marketing season of 2023-24 was much higher than domestic demand and consumption and better production is expected in the next season as well because more than normal rainfall is expected in the country during the monsoon season, but the government is unlikely to allow sugar exports at least for the next three-four months.
The current marketing season and monsoon season will end in September and then the government can take a decision after reviewing the outstanding stock of sugar and the next production.
According to industry analysts, due to many restrictive policies of the government, millers have already accumulated surplus stock of 20 to 30 lakh tonnes of sugar.
Although various associations and organizations had earlier estimated the sugar production to be reduced to between 290-300 lakh tonnes in the marketing season of 2023-24, due to which there was an atmosphere of bullishness in its prices and hence the government did not consider opening its export.
If the market price of sugar remains at a high level in the coming months, then the government may have difficulty in considering approving its export.