Latest News | ISMA Urges Govt to Reconsider Sugar Exports Amid Surplus

New Delhi, Jul 3 (PTI) Sugar industry body ISMA on Wednesday called on the government to reconsider allowing sugar exports, citing a projected surplus and the potential financial strain on mills.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) estimates a surplus sugar of up to 3.6 million tonnes in the 2023-24 season ending September, while experts predict closing stocks of 9.1 million tonnes.

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"This estimated surplus... can potentially lead to additional costs for the millers on account of idle inventory and carrying costs," ISMA said in a statement.

The industry body argues that domestic consumption and availability are "more than comfortable" and that the Ethanol Blending Programme can be managed effectively.

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ISMA Director General Deepak Ballani said allowing exports would ensure adequate domestic stocks, sustain the ethanol programme, and help maintain mills' financial liquidity for timely farmer payments.

The call comes as the government raised the fair and remunerative price (FRP) of sugarcane for the 2024-25 season by Rs 25 to Rs 340 per quintal.

ISMA warned that the FRP hike would increase production costs and further burden financially stressed mills, which must pay farmers within 14 days of cane delivery.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)