Mills have signed contracts to export 7 mt of sugar: Centre

In opposition to the export target of six million tonnes (mt), sugar mills have entered into contracts for about seven mt in the existing sugar year and more than six mt of sugar have previously been exported, an formal assertion said on Thursday.

“Some sugar mills have also signed forward contracts for exports in ensuing sugar year setting up Oct. Export of sugar has served in keeping desire-offer stability and stabilising domestic ex-mill price ranges of sugar,” the assertion said.

In accordance to the assertion, issued by the Ministry of Shopper Affairs, Food items and Public Distribution, sugar mills bought sugarcane value ₹91,000 crore in the existing year ending September.

“In the existing sugar year, sugarcane value a history ₹90,872 crore has been bought by sugar mills and about ₹81,963 crore cane dues have been compensated to farmers. Only ₹8,909 crore cane arrears are pending as on August sixteen. Raise in export and diversion of sugarcane to ethanol has expedited cane cost payments to farmers, the assertion said.

Long-lasting alternative

In comparison, sugar mills bought sugarcane value ₹75,845 crore in the previous year.

To find a everlasting alternative to offer with the dilemma of surplus sugar, the federal government is encouraging sugar mills to divert surplus sugarcane to ethanol which is blended with petrol. This not only serves as a inexperienced fuel but also saves international trade on account of crude oil import.

The revenue generated from sale of ethanol by mills also assists sugar mills in clearing cane cost dues to farmers. In 2018-19 and 2019-twenty seasons, about three.37 lakh tonnes (lt) and 9.26 lt of sugar, respectively, have been diverted to ethanol.

In the existing sugar year, more than twenty lt is very likely to be diverted. In the ensuing sugar year, about 35 lt of sugar is approximated to be diverted, the assertion said, introducing that this could go up 60 lt by 2024-twenty five.