New Delhi, Feb 3 (IANS): As against the domestic consumption, there has been surplus production of sugar in the country since sugar season 2010-11 (October-September), except in sugar season 2016-17 due to drought, the Parliament was informed on Wednesday.
"In the previous sugar season 2020-21, about 310 lakh metric tonnes (LMT) of sugar was produced, after discounting diversion of 22 LMT of sugar to ethanol, by Indian sugar mills against domestic consumption of 265 LMT. Further, against the estimated domestic consumption of 270 LMT in sugar season 2021-22, the sugar production is estimated to be around 308 LMT, again, after discounting estimated diversion of 35 LMT of sugar to ethanol," Union Minister of State for Consumer Affairs, Food and Public Distribution, Sadhvi Niranjan Jyoti told the Lok Sabha in a written reply.
The government has been extending assistance to sugar mills, with a view to facilitate export of surplus sugar, and thereby, improving liquidity of sugar mills and enabling them to clear cane price dues of farmers, she said,
Giving details of export of sugar in past five years, the Minister said, in the sugar seasons 2016-17 ande 2017-18, 6.2 LMT was exported, in 2018-19, exports came down to 38 LMT followed by a substantial increase to 59.6 LMT in sugar season 2019-20, and further increased to 70 LMT in sugar season 2020-21. The export of sugar in sugar season 2021-22, till Jan 31, 2022, is 26.5 LMT.
Till date, contracts of about 40 LMT have been signed for export of sugar in current sugar season and that too without announcement of any export subsidy. It is also estimated that in sugar season 2021-22, about 50-60 LMT of sugar is likely to be exported by domestic sugar mills.
Further, to facilitate export of surplus sugar from country, custom duty on export of sugar has been withdrawn by the Central government from March 20, 2018.
Due to surplus production of sugar in the country since sugar season 2017-18, the Central government has imposed 100 per cent custom duty on import of sugar under OGL to prevent imports and thereby to safeguard the interest of sugar cane farmers.
However, import of raw sugar is valid under Advance Authorisation Scheme (AAS) under which raw sugar is imported in the country and re-exported after refining it. Such quantity of sugar which is imported under AAS cannot be sold in domestic market and can be re-exported only, she said.
Giving out details of sugar imported in last five years, the Minister informed that in the financial year 2017-18, 23.91 LMT sugar was imported, in 2018-19, it was 14.98 LMT, in 2019-20, it was 11.15 LMT, and in 2020-21 (19.63 LMT). In 2021-22, up to November 30, 2021, it was 2.8 LMT.