1 week ago
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Expecting this sugar season’s (September 2023 - October 2024) output to exceed demand, India’s sugar producers are demanding 20 lakh tonnes be allowed to be exported. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said production has reached 314 lakh tonnes in the first seven months of the 2023-2024 sugar season. With additional output of almost six lakh tonnes expected from the sugar mills in Karnataka and Tamil Nadu, the net sugar production is estimated to be close to 320 lakh tonnes.
A press release from the ISMA said 516 factories have stopped crushing operations and only 16 were continuing operations. Some factories in Karnataka and Tamil Nadu will operate during the special season (June – September) that occurs only in these two states.
Taking into account an opening stock of approximately 56 lakh tonnes and domestic consumption estimate of 285 lakh tonnes, the ISMA expects the closing stock for the current season ending September 30, 2024, to be 91 lakh tonnes.
This can potentially lead to additional costs for the millers on account of idle inventory and carrying costs, the Association said.
