New Delhi, April 7 Food Secretary Sanjeev Chopra said on Tuesday that there is no proposal to ban sugar exports to boost domestic supply, and that the government is considering the industry's demand to increase the minimum selling price of the sweetener.
The secretary said that sugar prices have remained stable, and rates are unlikely to increase further due to sufficient domestic supply.
He also informed that a committee of government officials has been set up to consider ways to utilize the surplus manufacturing capacity of ethanol, including increasing the blending of ethanol with petrol from the current 20 per cent.
Chopra said there is no proposal to reduce import duties on edible oils.
The secretary said that wheat crops, which are currently being harvested, are good this year, and the government may relax quality norms for the procurement of foodgrain in view of the recent rains.
"As of now, there is no proposal to ban sugar exports," Chopra said at a conference here, when asked about reports of a possible ban to boost domestic supply.
He said that global prices have firmed up due to the conflict in West Asia, improving the chances of exports from India.
However, Chopra said it would be "challenging" for mills to export the 15 lakh tonne quota approved by the food ministry for the current 2025-26 sugar marketing year (October-September).
The secretary said that the closing stock of sugar would be high if exports are less than the approved quantities, and this would provide flexibility for higher diversion of sugar for ethanol making in the next marketing year.
Regarding the industry's demand to raise the minimum selling price (MSP) of sugar from Rs 31 per kg, Chopra said that the food ministry is considering the proposal.
In response to the demand to increase ethanol blending in view of the current West Asia crisis and rising crude oil prices, Chopra said, "There is a demand from the industry to increase the blending of ethanol with petrol from the current 20 per cent. We have a surplus capacity of 2,000 crore litres of ethanol manufacturing."
"A committee has been set up to look into how to utilize this additional capacity. We may get some news before the next ethanol supply year," the secretary said.
Chopra said that there are several options, including increasing ethanol blending and promoting flex fuel vehicles.
Officials from the food, petroleum, and heavy industries departments are part of this panel, he added.
He also highlighted that the ethanol blending program has resulted in a whopping saving of Rs 1.75 lakh crore in foreign exchange since 2014.
Chopra said that sugar prices have remained stable. "I don't see any kind of jump or spike in prices."
On cane arrears, he said that the situation is under control, and he hopes that payment to farmers should not be a challenge for mills due to cash liquidity from exports and the ethanol blending program.
"I don't think sugarcane arrears will pose a problem," he said.
On sugar production estimates, Chopra said that it should be around 320-325 lakh tonne before diversion of ethanol for the current 2025-26 marketing year, ending in September. The industry is expecting a diversion of 35 lakh tonnes of sugar for ethanol making.
Earlier, addressing the conference, the secretary stressed on taking help of modern technologies to improve efficiencies in the sugar sector, boost sugarcane yield, and also increase the recovery of sugar from sugarcane.