India could export more sugar in 2022/23 - major sugar company

Balrampur Chini Mills

01/03/2023 08:48

By Sarah  El Safty
       DUBAI, March 1 (Reuters) - India could export up to one
million tonnes more of sugar in the 2022/23 season if production
is at the upper end of current estimates, an official from one
of the country's largest sugar and ethanol manufacturers said on
Wednesday.
    Avantika Saraogi of Kolkata-based Balrampur Chini Mills
 BACH.NS  said on the sidelines of the Dubai Sugar Conference
that current estimates for India's sugar production ranged from
33.5 million to 34.5 million tonnes.
    India has exported only 6.1 million tonnes of sugar so far
in 2022/23, down from a record 11 million tonnes in the prior
season. Government and industry officials have downplayed the
prospect of more exports due to an expected drop in output,
particularly in the major producing state of Maharashtra.
    Saraogi said, however, if the crop goes above 34.0 million,
and the government sees sufficient stocks in April, it may well
approve up to one million tonnes of further exports.
    The Indian Sugar Mills Association (ISMA) cut its forecast
in late January to 34 million tonnes for the 2022/23 season
ending in September, while earlier this week the All India Sugar
Trade Association (AISTA) said the country was likely to produce
only 33.5 million tonnes.
    In contrast, Saraogi said Balrampur Chini Mills was set to
report a 15% increase in sugar production in 2022/23 following a
better crop this year.
    "It's not true for the whole country, but for my company it
is very good," she said.
    Saraogi said her company is currently diverting 20% of its
sucrose output into ethanol production after doubling its
capacity over the past year.
    India has set a target of 20% ethanol blending in gasoline
by 2025, up from a current level of about 10%, aiming to save
foreign exchange, cut carbon emissions and improve air quality.
    Rahil Shaikh, Vice Chairman of AISTA told the conference
that about 4.5 million tonnes of sucrose was currently being
diverted to make ethanol, with the government prioritising
ethanol and the domestic sugar market over exports.
    Sonjoy Mohanty, ISMA's Director General, said ethanol
diversion was increasing rapidly and the target of 20% blending
by 2025/26 would be achieved.

 (Reporting by Sarah El Safty, Writing by Nigel Hunt; Editing by
Sonali Paul)
 ((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters
Messaging: nigel.hunt.thomsonreuters.com@reuters.net))