The Government may consider allowing more sugar exports on higher output in the current season. So far, the Government has allowed exports of 3 million tonnes in three tranches of 1 million tonnes each. However, the export notification for 1 million tonnes approved late March is yet to be issued by the Food Ministry.
“We will consider more exports in the coming Empowered Group of Ministers (EGoM) meet as our production is good,” the Food Minister, Prof K.V. Thomas said. The EGoM is expected to meet on April 25.
The EGoM is also expected to discuss the shipment modalities for the export of the million tonnes recently approved. “We are not against allowing exports of some more quantity of sugar exports as our position is good,” Prof Thomas told reporters. However, he did not specify the additional quantity that will be allowed.
The Food Ministry expects production for the 2011-12 season to touch 25.5 million tonnes, up from 24.6 million tonnes last year. However, the industry, which forecast an output of 26 million tonnes in August for the current year, stands by its initial projections. The domestic consumption is seen at 22 million tonnes.
Such additional exports will help sugar millers address the issue of rising cane arrears, which are seen touching a whopping Rs 10,000 crore.
On Tuesday, the Indian Sugar Mills Association reported a 13 per cent rise in output till April 15 at 24.63 million tonnes. In the corresponding period last year, output stood at 21.73 million tonnes.
Output in Maharashtra, the largest producer, grew 9 per cent to 8.54 million tonnes till April 15. Cane recovery has improved to 11.57 per cent in the State.
In Uttar Pradesh, sugar output grew 18 per cent at 6.91 lakh tonnes, while the recovery was up 9.06 per cent. Karnataka and Tamil Nadu also reported a higher output of 3.72 million tonnes and 1.45 million tonnes respectively.