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In a letter written to the Meals Secretary Sundhanshu Pandey on June 10, a replica of which is with ET, ISMA has mentioned that speedy announcement of subsequent 12 months’s sugar coverage will assist the mills enter into futures contracts at good costs.
ISMA has requested the federal government to overview the present sugar export coverage and permit export of at the very least 80 lakh tonnes of sugar beneath Open Basic License (OGL) in the course of the subsequent sugar season beginning October 1, 2022.
“We consider it’s the proper time to announce the identical as the present international costs are agency. Millers will get a possibility to enter futures contracts at good costs. Accordingly, they will plan their manufacturing for subsequent season prematurely,” mentioned ISMA within the letter.
In line with ISMA, the realm beneath sugarcane plantation for 2022-23 is anticipated to be greater by 2% than the continued sugar season. Because the IMD has forecast a traditional monsoon in 2022, ISMA thinks that it’ll augur nicely for the sugarcane crop throughout its progress section.
The sugar manufacturing in 2022-23 is not going to be lower than the sugar manufacturing of the present 12 months, which is 394 lakh tonnes with out contemplating diversion for ethanol. The cane that was diverted for ethanol within the present 12 months was equal to 34 lakh tonnes of sugar, the letter mentioned.
“Nonetheless, it seems that the sugar manufacturing within the subsequent 12 months could possibly be on the upper facet. Due to this fact, even after an anticipated greater diversion of sugar in the direction of manufacturing of ethanol subsequent 12 months, there might be ample surplus sugar accessible for exports,” mentioned ISMA.
