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

Against the export goal of six million tonnes (mt), sugar mills have entered into contracts for about seven mt in the latest sugar year and above six mt of sugar have by now been exported, an official assertion stated on Thursday.

“Some sugar mills have also signed forward contracts for exports in ensuing sugar year commencing Oct. Export of sugar has aided in retaining desire-offer stability and stabilising domestic ex-mill charges of sugar,” the assertion stated.

According to the assertion, issued by the Ministry of Consumer Affairs, Meals and Public Distribution, sugar mills acquired sugarcane truly worth ₹91,000 crore in the latest year ending September.

“In the latest sugar year, sugarcane truly worth a report ₹90,872 crore has been acquired by sugar mills and about ₹81,963 crore cane dues have been paid out to farmers. Only ₹8,909 crore cane arrears are pending as on August sixteen. Maximize in export and diversion of sugarcane to ethanol has expedited cane selling price payments to farmers, the assertion stated.

Long term resolution

In comparison, sugar mills acquired sugarcane truly worth ₹75,845 crore in the previous year.

To uncover a long term resolution to offer with the trouble of extra sugar, the federal government is encouraging sugar mills to divert extra sugarcane to ethanol which is blended with petrol. This not only serves as a eco-friendly fuel but also saves foreign exchange on account of crude oil import.

The income created from sale of ethanol by mills also will help sugar mills in clearing cane selling price dues to farmers. In 2018-19 and 2019-twenty seasons, about 3.37 lakh tonnes (lt) and nine.26 lt of sugar, respectively, were being diverted to ethanol.

In the latest sugar year, above twenty lt is likely to be diverted. In the ensuing sugar year, about 35 lt of sugar is believed to be diverted, the assertion stated, introducing that this could go up 60 lt by 2024-twenty five.