Indian sugar mills association

Golden time for India to enter

Date:	11 Nov 2011

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News ID:	674

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Batting for the sugar industry, Agriculture Minister Sharad Pawar yesterday advised the government to enter the export market in a big way and capitalise on higher global rates.

“There is surplus sugar. This is a golden time for India to enter the global market in a big way and get a better price, which will ultimately be provided to cane-growers,” the Agriculture Minister said on the sidelines of the international conference on “Innovative Approaches for Agriculture Knowledge Management System: Global Extension Experiences”.

With projections of surplus sugar production this marketing year, sugar production in the country - the world`s second-largest sugar producer and biggest consumer - is estimated at 25-26 million tonnes in the 2011-12 marketing year (October-September) as against the annual domestic demand of about 22 MT.

The government, however, is yet to announce the export policy for the current marketing year.

So far the country has exported 2.6 million tonnes in the previous marketing year, of which 1.5 MT was through Open General Licences (OGL), in three equal tranches.

There are indications that the government may work out a scheme for export of a certain quantity of sugar, which will be favourable to both the industry and farmers, next week.

Yesterday, Food Minister K V Thomas had said that EGoM on Food, headed by Finance Minister Pranab Mukherjee, might meet on November 16-17 to decide on allowing sugar exports this marketing year.

Sugar industry body ISMA has been demanding the export of 4 MT of sugar this marketing year to help mills improve their cash flows. At the current global price of about $ 670-680 per tonne, sugar mills will earn a premium of Rs 3.5 per kg from exports of the sweetener vis-à-vis domestic rates if the government allows overseas shipments.

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