ISMA forecasts a significant surplus of sugar production in India

ISMA has urged the Indian government to reconsider the issue of exporting surplus sugar after due consideration of domestic supply and demand. This is reported by agrospectrumindia.

The Indian Sugar and Bioenergy Manufacturers Association (ISMA), the highest body in the country’s sugar and bioenergy industry, predicts a significant surplus of sugar of up to 3.6 million tons this season. According to experts, the initial stock of approximately 5.6 million tons in October 2023, in addition to the projected domestic consumption of almost 28.5 million tons in the season, will lead to a significant increase in the final stock of 9.1 million tons by the end of September 2024. This projected surplus of 3.6 million tons above the regulatory stock of 5.5 million tons could potentially lead to additional costs for producers due to unused stocks and storage costs.

In light of these forecasts, it is clear that the situation with domestic consumption and availability is more than comfortable. The ethanol blending program (EBP) can be managed very well within the sugar cane production, and that the surplus sugar left behind due to the sudden stop of blending of ethanol from sugar cane and sugar syrup is surplus and cannot be converted back to ethanol. In this situation, ISMA called on the government to reconsider the permission to export surplus sugar after due consideration of domestic supply and demand. This will increase the financial liquidity of sugar factories and allow timely payments to cane farmers. ISMA believes that allowing exports will contribute to the smooth functioning of the sugar industry and strengthen economic stability.

Tags: sugar, India