The announcement of the policy will help sugar mills secure forward export contracts. Indian Sugar Mills Association (Isma) chairman Aditya Jhunjhunwala said the association urged the government to allow exports of 8 million tonnes of the sweetener in 2022-23 due to excess production.
India had recorded record sugar exports under open general license in 2021-22. Shipments were halted by the government in May this year when it capped annual exports at 10 million tonnes as part of its measures to control food inflation in the domestic market.
Isma also demanded an increase in the minimum selling price (MSP) of sugar, as commodity prices increased due to the increase in the fair remunerative price (FRP) of sugar cane. The FRP is the minimum price that sugar mills must offer to sugar cane growers. Recently, the government set the FRP for sugarcane at Rs 305 per quintal for the upcoming 2022-2023 marketing season. The association also called on the government to provide support for setting up new capacity expansion units as demand for ethanol increases. This expansion could cost ₹20,000 crore, Jhunjhunwala said.