Maharashtra's co-operative sugar mills controlled by politicians are all set to reap a bonanza after a sharp depreciation in the rupee has made the produce very competitive in the global markets. "Sugar production is expected to fall in Brazil, Thailand and Europe. In Brazil, the government wants to increase production of ethanol in place of sugar," Prakash Naiknavare, managing director, National Federation of Cooperative Sugar Factories, said on Monday. According to him, the depreciation of the Indian rupee coupled with subsidies provided by the central government could result in record sugar exports form the country. Naiknavare said the Indian Government has set a target of 50 lakh tonnes of sugar in the current financial year. Of this, Maharashtra alone could account for 15 lakh tone.
According to information available from the Maharashtra sugar mills federation, the central government has announced a number of subsidies and incentives for exporters, including a transport subsidy. In all, exporters will receive assistance to the tune of Rs 11 per kilogram of sugar exported from the country, according to officials from the co-operatives. Top leaders of various political parties who control sugar co-operatives in Maharashtra chalked out a programme to increase exports of sugar at a meeting with Nationalist Congress Party supremo Sharad Pawar last weekend, according to sources.
Among the suggestions put forward include sending delegations from the sugar mills to various countries that have traditionally been importing sugar from Brazil. China, which is seeking to diversify its imports from the US and its allies, is also seen as a major market for India. Officials from the Maharashtra sugar federation say India is sitting on at least 44 million tonnes of the produce, but there’s also a feeling that much of it is substandard and couldn’t be sold in the international markets. Domestic demand for sugar is around 26 million tonnes annually.