Indian sugar mills association

Export of 1 mt more sugar may get nod

Date:	15 Mar 2012

Source:	The Financial Express

Reporter:	FE Bureau

News ID:	998

Pdf:	news15-3-2012.pdf
Nlink:

New Delhi: The government may allow exports of one million tonne of sugar on top of the two million tonne already permitted for the marketing year through September, a senior food ministry official said on Wednesday. Earlier this month, agriculture minister Sharad Pawar said the country had the potential to ship out one million tonne more sugar in 2011-12, as domestic supplies remained adequate. The apparent agreement between the ministries of food and agriculture brightens export prospects, as the two ministries had on occasions offered conflicting views on sugar shipments in the past. We will have bumper production of sugar in this season. So, more exports can be allowed, said the food ministry official, who didn`t want to be named. A proposal to allow further exports may be placed before an empowered group of minister on food, headed by finance minister Pranab Mukherjee, by the end of this month or early April, he added. The food ministry has already revised upward its sugar output estimate by around 500,000 tonne to 25.2 million tonne, based on the inputs of cane commissioners of producing states, while domestic consumption is pegged at around 21.5 million to 22 million tonne. India, the world`s second largest sugar producer, had exported 2.6 million tonne of sugar in 2010-11. The country has allowed exports in two equal tranches so far in 2011-12, as domestic supplies have exceeded demand for a second straight year. India`s sugar output jumped 15% until end-February to 18.65 million tonne due to higher cane crushing. The government had permitted 1.5 million tonne under the open general licences last year in three equal tranches, starting April 2011, after a gap of two years when it faced a shortage. Industry executives had said sugar mills lost out on a chance to maximise export returns by cashing in on soaring global prices in February and March last year due to the late decision by the government. The domestic industry has been demanding that exports of 3 million to 4 million tonne be allowed in 2011-12 as domestic supplies remain plentiful. Industry executives often blame low sales realisation in the domestic market and the lack of a clear export policy for non-payment of arrears to farmers for cane purchases. US raw sugar futures crashed 27% in 2011, the first annual fall in four years, on higher output in Asia and Europe, although exports are still more remunerative for Indian mills as domestic wholesale prices have remained subdued more than seven months now due to adequate supplies.

News

Navigation