The Indian Sugar Mills Association (ISMA) on Wednesday backed government's Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the next marketing year and said it will help the Indian sugar millers to export sugar.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, approved the food ministry's proposal in this regard.
"We have taken an important decision in the interest of sugarcane farmers. The cabinet has approved export subsidy for 6 million tonnes for the 2019-20 marketing year (October-September)," Information and Broadcasting Minister Prakash Javadekar told reporters after the cabinet meeting.
In an interview to CNBC-TV18, Abinash Verma, director-general, said, "This is all for the next season. So the 60 lakh tonne would be targeted to be exported in 2019-2020. We expected opening stock of sugar as on October 1, 2019, would be 142 lakh tonne and they are showing that the end stock expected at the end of the next season that is September 30, 2020, would be 162 lakh tonne. I presume that that number taken as 162 is if no exports happen. But if we are going to export that 60 lakh tonne, then instead of a closing balance of 162 lakh tonne at the end of next season, it will be 102 lakh tonne a net reduction of about 40 lakh tonne."
He added, â€œThe next year all the experts internationally are expecting a deficit of about 4 million tonne of consumption overproduction. So, therefore, we expect that the prices should be moving up probably in the latter part of the year from November-December onwards. The current volatility or the current movement in the international prices which you have already seen is on the lower side is because the Brazilian currency has depreciated quite substantially in the last about a month."