look news india
Mumbai: The sugar export ban is expected to be extended for the second consecutive year, given the possibility of low sugarcane production in the country in the current Kharif season. Crops have been washed away due to excessive rains in states like Maharashtra and Uttar Pradesh. Increasing domestic consumption of sugar for ethanol is also a reason for the export ban.
Government sources said the government is also planning to increase the minimum price of ethanol purchased from sugar mills.
Benchmark prices in New York and London have risen as India's sugar supply to the world market has been halted. Sugar supplies have been affected as a result of drought conditions in Brazil. Brazil is the world's largest sugar producer.
After meeting the domestic demand of sugar, the second priority of the government is ethanol blending. To reduce pollution caused by petrol in the country, the government aims to increase the blending of ethanol in it.
Sources also said the government is considering raising the ethanol procurement price by five per cent for the new sugar season starting in October.
Sugar production is estimated to decline to 32 million tonnes in the 2024-25 season, from 34 million tonnes in the current season. Sugarcane juice or syrup is used in the production of ethanol.