ISMA backs government's Rs 6,268 crore subsidy to export 6 million tonne of sugar

In an interview to CNBC-TV18, Abinash Verma, director-general, said, "This is all for the next season. So the 60 lakh tonne would be targeted to be exported in 2019-2020. We expected opening stock of sugar as on October 1, 2019, would be 142 lakh tonne and they are showing that the end stock expected at the end of the next season that is September 30, 2020, would be 162 lakh tonne. I presume that that number taken as 162 is if no exports happen. But if we are going to export that 60 lakh tonne, then instead of a closing balance of 162 lakh tonne at the end of next season, it will be 102 lakh tonne a net reduction of about 40 lakh tonne."

He added, “The next year all the experts internationally are expecting a deficit of about 4 million tonne of consumption overproduction. So, therefore, we expect that the prices should be moving up probably in the latter part of the year from November-December onwards. The current volatility or the current movement in the international prices which you have already seen is on the lower side is because the Brazilian currency has depreciated quite substantially in the last about a month."