The government will allow a further 1.2 million tonnes of sugar exports, Food Secretary Sudhanshu Pandey said on the sidelines of an event in New Delhi.
In late May, the government had restricted sugar shipments at 10 million tonnes in this marketing year to maintain domestic availability and price stability.
The industry has been demanding that the export cap should be stretched.
Sugar mills have already exported nearly 10 million tonnes so far — an all-time high — in the current marketing year and the exports are likely to touch 11.2 million tonnes, the food ministry had said in a statement earlier this week.
The exports of the sweetener stood at 7 million tonnes in the 2020-21 marketing year, up from 5.96 million tonnes in the previous year.
Industry body Indian Sugar Mills Association (ISMA) has estimated that India’s sugar production could fall slightly to 35.5 million tonnes in the 2022-23 marketing year, starting October, due to the diversion of sugarcane towards ethanol manufacturing.
Sugar output is estimated at 36 million tonnes in the current marketing year ending September.
Before considering diversion towards ethanol, net sugar production is estimated to be higher at 39.99 million tonnes in 2022-23 against 39.4 million tonnes in the current 2021-22 marketing year.
ISMA estimates that the diversion of cane juice and B-molasses to ethanol will reduce sugar production by about 4.5 million tonnes in the next 2022-23 marketing year.
In the current 2021-22 marketing year, about 3.4 million tonnes of diversion has been estimated.
The annual domestic demand is seen at around 27.5 million tonnes in 2022-23, which will leave a surplus of about 8 million tonnes for exports.
(With inputs from PTI)