Indian sugar mills association

Industry seeks approval for wh

Date:	31 Oct 2011

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News ID:	632

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The Indian Sugar Mills Association (ISMA) has asked the government to allow shipment of both white as well as organic sugar to the European Union for wider participation of domestic mills in the tendering process.

In June, the commerce ministry had allowed exports of 10,000 tonne of organic sugar to the EU in 2011-12. A Committee Of Secretaries, chaired by commerce secretary Rahul Khullar, is expected to discuss whether to allow white sugar exports to the EU, along with a cut in the floor price of onion exports, on Monday, official sources said.

Its recommendations will be placed before the empowered group of ministers on food, headed by finance minister Pranab Mukherjee, for approval.

Industry executives said the Indian Sugar Exim Corporation (ISEC) had been exporting white or refined sugar to the 26-nation bloc under a long-term arrangement approved by the government until three years ago when it was asked to ship only organic sugar. Since only two out of 600-odd mills in the country produce organic sugar, the tendering process to source supplies for exports becomes “monopolistic”, they added.

ISMA, the apex sugar industry body, is one of the two stakeholders of the ISEC.

An official source said the government had allowed organic sugar exports to the EU as it costs more than white sugar and it also wanted to promote organic farming

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