Indian sugar mills association

eGoM may decide on sugar exports next week

Date:	05 Jan 2012

Source:	The Tribune

Reporter:	Vibha Sharma

News ID:	822

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New Delhi, January 4: An empowered group of ministers (eGoM) is expected to meet next week to decide on more sugar export during the marketing year ending September 2012.

According to sources, Finance Minister Pranab Mukherjee-led group may meet sometime next week to take a call on this major demand of the industry to allow additional exports of at least one million tonnes to enable domestic mills to take advantage of lower than anticipated output in top supplier Brazil and reduce the liquidity crunch in the sector.

The eGoM had last November approved sugar exports of one million tonnes under the open general licence scheme in the current marketing season. Basing its arguments on availability of surplus stocks, the industry has been clamouring for more, at least 3 mt.

According to the Indian Sugar Mills Association (ISMA), the sugar industry produced 75.78 lakh tonnes up to December 31, 2011 in the current sugar season, which is around 1.1 million tonnes more than the sugar production up to December 31, 2011 of 64.58 lakh tones.

The sugar industry will be conducting its second satellite mapping on sugarcane harvesting for the 2011-12 sugar season in the beginning of February to firm up and update the industry`s estimate of 26 million tonnes of sugar production of the 2011-12 season.

According to ISMA, the estimated sugar cane crush during the next sugar season 2011-12 will be around 264.5 million tonnes, which translates into 26 million tonnes of sugar. The total availability of sugar, however, works out to 31.8 mt. The domestic consumption is around 22 mt, therefore, the industry association says, the mills will be left with 9.8 mt of surplus sugar

India, the world`s largest sugar producer after Brazil, allowed exports of 1.5 million tonnes under the open general licence scheme in 2010-11 after a gap of two years when it faced a shortage. Industry experts, however, argue that sugar mills lost out on a chance to maximize export returns by cashing in on soaring global prices in February and March last year due to the late decision.

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