Indian sugar mills association

Surplus Supplies May Allow 1mt of Sugar Export

Date:	06 Mar 2012

Source:	The Economic Times

Reporter:	ET Bureau

News ID:	968

Pdf:
Nlink:

The government may allow export of 1 million tonne of sugar in addition to the export quota of 2 million tonne due to surplus production expected this year.

“We have stock for additional exports of 1 million tonne of sugar. We also have surplus stocks of wheat and rice for additional exports of 1 million tonne each,” said Agriculture Minister Sharad Pawar on the sidelines of the National Conference on Agriculture for Kharif 2012. The government has till now allowed export of 2 million tonne of sugar, while wheat and rice exports were permitted in September 2011 under Open General Licence (OGL) with no quantity restrictions.

Rabobank International said in a recent report that the government may allow sugar exports above the permitted 2 million tonne limit if domestic output surpasses the estimate of 25.3 million tonnes this year.

Rabobank expects India`s sugar production at 25.3 million tonne in the ongoing marketing year (October 2011-September 2012), 4% higher than last year`s and above the government estimate of 24.5 million tonne, but lower than industry body ISMA`s projected 26 million tonne.

Last year, India produced 24.2 million tonne of sugar and exported 2.6 million tonne. Industry expects another 1 million tonne to be allowed for exports after this fiscal year. “We have a surplus of 4 million tonne. We expect the government to allow us to export this entire surplus. It will help us in reducing inventory costs besides ensuring a cash flow of . 3,000 crore,” said Abinash Verma, director general, Indian Sugar Mills Association. Apart from that, the government may also export an additional 1 million tonne of rice and wheat each after successive bumper harvests.

“We produced 86 million tonne wheat last year and this year it may cross 88 million tonne, which will be record. “ Pawar said.

News

Navigation