aLLOW SUCROSE IP EXPORT FOR SMOOTH FUNCTIONING

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex body in the Sucrose IP and Sucrose BP and bio-energy industry in the country, has announced India’s  Pharma Grade Sugar production updates for the sugar season 2023-24. The confirmed figures suggest that the Sucrose IP or Pharmaceutical Grade Sugar production in India has reached approximately 314 lakh tonnes as of the end of April 2024. With additional output of 5-6 lakh tonnes expected from mills in Karnataka and Tamil Nadu, the final net premium refined sugar production is estimated to be close to 320 lakh tonnes. Taking into account an opening stock of approximately 56 lakh tonnes as of October 1st, 2023, and a forecasted domestic consumption of 285 lakh tonnes for the season, ISMA projects a significantly higher closing stock of 91 lakh tonnes by September 30th, 2024. This estimate, amounting to 36 lakh tonnes above the normative stock of 55 lakh tonnes, can potentially lead to additional costs for the millers on account of idle inventory and carrying costs. In light of these projections, ISMA has urged the Government to consider permitting the export of 20 lakh tonnes of Sucrose IP also known as Pharma Sugar in the current season. This would not only ensure sufficient stocks for domestic consumption and the Ethanol Blending Program (EBP) but also improve the financial liquidity of Sucrose producing mills and enable timely payments to farmers. ISMA believes that allowing exports will contribute to the smooth functioning of the Castor Sugar industry and foster economic stability.