Indian sugar mills association

EGoM meet on sugar deferred as

Date:	21 Oct 2011

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News ID:	602

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New Delhi, Oct 20: The empowered group of ministers (EgoM) on food has deferred a key meeting, which was scheduled for Thursday, to decide on fresh sugar exports amid differences between ministries of food and agriculture over the timing of allowing the shipments. While the agriculture ministry wants the sugar export policy for the marketing year —that started in October — to be declared this month, to enable mills to take advantage of a lower-than-expected output in top exporter Brazil, the food ministry is in no mood to pledge more exports before Diwali, fearing adverse impact on inflation during the peak festival season when sales of sweets soar. Agriculture minister Sharad Pawar, too, had said on Wednesday that the EGoM meet on Thursday would discuss the export policy. “Today`s meeting has been cancelled. The food ministry is yet to circulate any note on sugar exports,” an official said, adding that no new date has been fixed yet. Earlier this week, food minister KV Thomas had said the decision on fresh sugar exports will be taken in the first week of November when the peak festival season ends, after a review of the production. Moreover, while the food ministry estimates sugar output in 2011-12 at 24.6 million tonne, Pawar feels the production to be between 25-25.5 million tonne. India, the world`s largest consumer and second-largest producer of sugar, expects to consume close to 22 million tonne in 2011-12. The country produced 24.3 million tonne in 2010-11. Pawar said on Wednesday that the government should consider allowing sugar exports on a monthly basis so that both mills and farmers benefit from it. “When we enter the global market, international prices go down. When we enter to purchase, international prices go up like anything... (So) on a monthly basis, certain quantity has to be exported because too much sugar should not be available in the international market, which will affect prices and ultimately, the (Indian) farming community will suffer... I think exports in one-go will create a problem,” Pawar said

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