New Delhi, Sept 12:
Ahead of the new crushing season, sugar millers have urged the Government to subsidise exports of the sweetener, while seeking a hike in import duty to 30 per cent on both white and raw sugar.
The millers are reeling under the impact of high cane costs and arrears.
Addressing the 54th annual general meeting of National Federation of Co-operative Sugar Factories Ltd (NFCSFL), its President Kallappa Awade said the surplus sugar output in 2012-13 in both domestic and global markets had impacted prices.
Also, the import of raw and white sugar at nominal duty had adversely affected cane payments.
“The cane arrears stood at Rs 4,783 crore as on July 31. We earnestly urge you to impose at least 30 per cent import duty on white and raw sugar. Also, we request you to permit export subsidy on sugar to save the farmers and the industry,” Awade said.
Sugar imports currently attract a duty of 15 per cent.
The country’s sugar output will exceed 25 million tonnes in the sugar year 2012-13 ending September. The carry-over stock at the beginning of next season is expected to be 9.8 million tonnes.
Though the cane area for the 2013-14 season is expected to be lower by 6.4 per cent at 51.44 lakh ha against 55.08 lakh ha in 2012-13, the output in the season ahead is estimated at around 23.5 million tonnes, Awade said.
“Considering the domestic consumption of 23 mt, India will have a carryover stock of 9.8 mt.
About four million tonnes can be easily exported in 2013-14,” Awade said.
Food Minister K.V. Thomas, said the country was looking at a comfortable sugar position for the fourth year in a row.
Responding to the millers request on exports, Thomas said “in principle there can be no objection as it will help faster clearance of cane price arrears.”
Currently, sugar exports are under open general licence, subject to registration with the Director General of Foreign Trade.
Stating that the Government policies, including the one for exports were aimed at balancing the interest of consumers, farmers and the industry, Thomas assured millers that “if and when sugar policy is reviewed, we shall be fair to all stakeholders”.