Currently, raw, white and refined sugar – consumed as an everyday item – are on the restricted list till October 31. The government is expected to extend this timeline due to concerns about productivity. It is also expected to add organic sugar to the restricted list. The food ministry, from time-to-time, allows the industry to export certain quantity of sugar depending upon availability.
However, there have been concerns about the impact of the weakest monsoon in five years on sugarcane crops in the major producing states of Maharashtra and Karnataka, prompting the government to not allow any outbound shipment this season. “The export of organic sugar has jumped very high, touching 50,000 tonnes,” said the official who did not want to be named.
This has led to a suspicion that other forms of sugar are being exported under the guise of being organic. A notification in this regard is expected soon.
While the retail prices of sugar is under control, ex-mill and wholesale prices have gone up prompting the government to take measures in the benefit of consumers who have been grappling with high food inflation for the last few months.
Of the estimated sugar production of 31 mt in the current year, 27 mt is expected to be needed for domestic consumption as sweetener and 4.5 mt for ethanol production.
