Indian sugar mills association

Food minister says may allow 1-mln-tn more sugar exports in Jan

Date:	29 Dec 2011

Source:	NewsWire18

Reporter:	Rashmi Sanyal

News ID:	811

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NEW DELHI - India may allow an additional 1 mln tn sugar exports under the open general licence scheme in January, Food Minister K.V. Thomas said today.

"There will be a meeting of the Empowered Group of Ministers (on food) where a final decision will be taken," the minister told NewsWire18 today without giving any more information about the meeting.

If this second tranche of exports is allowed, India`s sugar sale overseas for the season started Oct 1 would be 2 mln tn.

The government had allowed 1 mln tn sugar exports late November.

So far, around 120 sugar factories have been issued permits to export 188,302 tn.

Any more export of sugar will depend upon domestic output, supplies, and prices, the food minister said.

The food ministry has estimated the country`s sugar output for 2011-12 (Oct-Sep) season at 24.6-25.0 mln tn.

However, the industry and the agriculture ministry expect sugar output in 2011-12 at around 26 mln tn. India had produced 24.3 mln tn sugar in 2010-11.

India had allowed export of a little over 3 mln tn sugar 2010-11, including 1.5 mln tn in three equal tranches under open general licence and 1.6-1.7 mln tn sugar against advance licences and re-export of imported raw sugar lying at ports.

Indian sugar is currently cheaper than that available overseas, and costs around 29,000-31,200 rupees per tn in major wholesale markets across the country.

White sugar for March delivery on the London International Financial Futures and Options Exchange had closed Wednesday at $599.10 (around 32,000 rupees) per tn.

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