It will have no impact on domestic prices, says Pawar
Union Food and Agriculture Minister Sharad Pawar on Wednesday said that the government will allow export of 5 lakh tonnes of sugar under Open General Licence by the end of this month after working out the modalities. All sugar mills would be allowed to take advantage of higher domestic sugar production and high global sugar prices.
Mr. Pawar also announced a hike in levy sugar price for the ongoing 2010-11 season (October-September) to Rs. 18.47 a kilogram from Rs. 17.57 last season. The government buys levy sugar from millers for sale in the Public Distribution System.
“With the prediction of good production and to take the advantage of good international prices, the government has already permitted exports against the pending ALS [Advance Licence Scheme] obligations,” Mr. Pawar said at the 76th annual general meeting of Indian Sugar Mills Association (ISMA), but lamented that millers did not export even half of what was expected.
“In order to maximise our returns, the first tranche of export of around five lakh tonnes under the OGL will also be permitted,” he said, adding that exports will not impact domestic prices as only excessive production would be exported. He also said that the quantity of export would be reviewed every month for the next three to four months and would be linked to production. “In the entire handling of the sugar sector, the interests of sugarcane growers and consumers will always be the overriding priority of my Ministry,” he added. The Minister said that the issue of de-control or de-regulation of the sugar industry was under consideration. “Decontrol will place the industry on a faster growth trajectory, but also bring new challenges that the millers must brace themselves for.”
The sugar industry expects sugar production to be 25.5 million tonnes this year, while the government estimates it to be 24.5 million tonnes.