Ahead of Assembly polls, Centre’s push on export, diversion of sugar to ethanol to ensure timely payment of cane dues to farmers

Vibha Sharma

Tribune News Service

New Delhi, August 19

Ahead of crucial Assembly polls, the Centre is taking proactive measures to boost the export of surplus sugar and divert to ethanol to ensure timely payment of dues of sugarcane farmers and boost the agricultural economy.

According to an official statement, against an export target of 60 LMT, contracts of about 70 LMT have been signed, more than 60 LMT has been lifted from sugar mills, and more than 55 LMT physically exported from the country as of August 16. Some sugar mills have also signed forward contracts for export for the ensuing sugar season 2021-22.

With international prices of sugar increasing substantially in the past month, the demand for Indian raw sugar is very high. Accordingly, an advisory has been issued to all domestic sugar mills that they should plan for raw sugar production for export in the ensuing sugar season 2021-22 right from the very beginning and sign forward contracts with importers to take advantage of high international prices of sugar and global deficit, according to an official statement

Sugar mills that export sugar and divert sugar to ethanol will also be given incentives in the form of an additional monthly domestic quota for sale in the domestic market.

In the past few years, sugar production in the country has been more than domestic consumption.

In order to find a permanent solution to deal with the problem of excess sugar, the Government is encouraging sugar mills to divert excess sugarcane to ethanol which is blended with petrol, which not only serves as a green fuel but also saves foreign exchange on account of crude oil import.

However, as the adequate ethanol distillation capacities would be added by 2024-25, therefore, export of sugar will continue for another 2-3 years, explain officials.