Sugar exports have not started even after New Delhi gave cane farmers a Rs 1,540-crore financial assistance package, seeking to flush out last year’s surplus stock in the world’s biggest consumer market of the natural sweetener. In March, India had allowed exports of two million tonnes of sugar for the 2017-18 marketing year to clear surplus stocks and improve cash flow to millers for making payment to sugarcane farmers, whose arrears have touched more than Rs 20,000 crore.
With more than 40 per cent of the mills not meeting that criterion, they are in a dilemma over starting exports. The trade also said that if Indian sugar exporters quoted a competitive price of $280-290 per tonne compared to the current price quoted at $320 per tonne, more contracts could be signed with traders in Africa, Middle East and other South Asian markets.
Sugar exporters also said that the government could create buffer stock of surplus sugar at 5-6 million tonnes, and through State Trading CorporationNSE -1.12 %, MMTC and PEC, New Delhi could float tenders for exports.