Ballani said that while export parity is currently not favourable, advance permission will help mills prepare for potential opportunities. “Even though parity is not there in the international market today, advance permission will help in planning raw production and contracts,” he said. ISMA expects a three to three-and-a-half-month export window between mid-December and March, when Brazilian sugar is not available in the global market.
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However, Ballani added that the export decision offers only temporary relief. The association is seeking long-term policy reforms related to minimum selling price (MSP) and ethanol pricing. “MSP has not been revised for the last five to six years and remains at ₹31 per kilo, while the cost of production is around ₹41-42,” he noted. ISMA has urged the government to revise the MSP to ensure domestic prices remain stable and farmers are protected.On ethanol, Ballani pointed out that the industry has invested ₹40,000 crore and created a capacity of about 900 crore litres, based on NITI Aayog’s projection for the E20 blending programme. But actual ethanol allocation this season is just around 290 crore litres, far below expectations.
“This low allocation makes operations unviable and affects the entire sugar balance sheet,” Ballani said. ISMA has recommended reserving 50% of ethanol allocation for sugar feedstock, extending priority allocation beyond producing states, and restricting imports of denatured alcohol so that local ethanol producers can meet chemical industry demand.
Ballani concluded, “This permission is a good start to the season, but long-term policy corrections in MSP and ethanol allocation are essential for sustainable growth.”
For the full interview, watch the accompanying video
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