Government cautious about controlling inflation, sugar export policy may come after Diwali

Sugar recovery rate is expected to decrease due to unseasonal rains. Production may decrease in Uttar Pradesh, Maharashtra and Karnataka. In October this year, there has been an increase of 90 percent. Sugar export policy may be announced after Diwali.

Government cautious about controlling inflation, sugar export policy may come after Diwali
Government cautious about controlling inflation, sugar export policy may come after Diwali, image source; jagran

Unseasonal heavy rains in major sugarcane producing states of Maharashtra, Uttar Pradesh and Maharashtra have led to flooding at many places. Due to this, the standing crops have fallen in the fields and their bales have sprouted, which is expected to reduce the recovery rate of sugar in cane. 

In the current sugar year, the mills are yet to become operational despite the start of the crushing season. In comparison, there is a good demand for sugar in the global market. In order to control the inflation of sugar in the domestic market due to the possibility of reduction in production, the government is being cautious in announcing the export policy. According to food ministry sources, actual estimates are being made about sugar production in the country. In the first fortnight of October, the rainfall has been recorded up to 90 percent more than the normal. 

Damage to sugarcane crop

According to Prakash Naiknavare managing director of the National Federation of Cooperative Sugar Factories, due to the rains in the western region states of Maharashtra and Karnataka, the fields have been flooded, due to which harvesting of sugarcane is not possible. The same is the case in the major sugarcane producing districts of Uttar Pradesh, where the sugarcane crop has fallen in the fields. A large part is submerged in floods. The formal start of crushing was done in two or four mills, which had to be stopped due to non-availability of sugarcane. 

Sugar demand may increase

The demand for Indian sugar is emerging in the international sugar market, due to which the domestic sugar industry is also very excited. But the policy of export of sugar is not being announced by the government. Sources say that only after the actual production of sugar is estimated, the government will consider the request of the sugar industry. The sugar industry has made a demand to allow export of 8 million tonnes of sugar for the current sugar year 2022-23. A total of 400 lakh tonnes of sugar is estimated to be produced in the current season. 

Ethanol will be produced in place of 44 lakh tonnes of sugar this season. Sugar prices in the domestic market have remained stable for the time being during the festive season. While the export demand for sugar has shown an encouraging growth. But the sugar industry is feeling a little difficult due to non-announcement of exports for the current season.