Policy Details and Impact
The has announced the export of 1 million tonnes of sugar for the 2024-25 season, aiming to stabilize domestic prices and support the sugar industry by boosting liquidity for mills and ensuring timely cane payments.
This policy, which allows mills to export directly or through merchant exporters, also includes provisions for mills to surrender or swap quotas, enhancing operational flexibility and cost efficiency.
Industry and Economic Context
India's sugar production is expected to decline to 27 million tonnes in 2024-25, falling short of domestic consumption, amid concerns of lower yields in key states. This export decision comes after a period of restricted exports due to domestic supply concerns.
The move has been welcomed by industry stakeholders as a significant relief, providing an opportunity for revenue generation and supporting farmers through timely payments, despite previous restrictions aimed at ensuring domestic availability.