PUNE: Sugar exporters, who are struggling with surplus production and low prices, are urgently seeking clarity on the government's export policy as the international market sentiment has improved ahead of the new season. 

The central government had announced a subsidy of Rs 4,000/tonne last year for export of raw sugar. India exported about 5 lakh tonne of raw sugar and about 5 lakh tonne to 6 lakh tonne of low quality white sugar. The export subsidy scheme will lapse on September 30. 

In order to sign contracts for export of sugar during the next sugar season beginning October 2015, the industry needs clarity about export policy. The union government had hinted at making exports mandatory for the sugar mills in order to get rid of the excess sweetener in the country. The domestic market also improved government talk about mandatory exports. However, no decision has yet been taken on this either. 

"The international market is good now for export of sugar from India. However, we need clarity on export policy. The sugar mills can get a price of about Rs 17/kg for raw sugar export," said Rahil Shaikh, managing director, ED and F Man (India). If the government continues the subsidy of Rs 4/kg, the mills can get about Rs 21/kg to Rs 23/kg for raw sugar, while the ruling rate of white sugar in the domestic market is about R 23/kg to Rs 24/kg. 

Last year, the central government announced export subsidy in February 2014, after which, it was not possible for many mills to produce raw sugar as the season was at its fag end. 

( Indian Sugar Mills Association) ISMA has projected about 28 million tonnes of sugar production for the season 2015-16, which is about 3 lakh tons less than last year. It is also estimated to have about an opening stock of about 1 million tonne on October 1, 2015. There could be some downward revision in the sugar production estimate, when ISMA comes out with its first advance estimate of sugar production based on satellite images by the end of September, 2015 due to the drought conditions in Maharashtra, the top sugar producer.