Sugar exports may be allowed up to 2.5 mn tonnes

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SME Times News Bureau | 25 May, 2012
The Centre may permit up to 2.5 million tonne sugar export under the Open General Licence (OGL) scheme in the 2011-12 marketing year, which ends in October.

"The Commerce Ministry is looking after sugar exports. It was decided to review exports once its touches two million tonnes. The industry has estimated output at 26 million tonnes and since there has been less lifting of levy sugar, there is scope for allowing additional 5,00,000 tonnes," Food Minister K V Thomas is quoted by a news agency report on Thursday.

The government has pegged sugar production at 25.2 million tonnes in the 2011-12 marketing year as against the annual demand of 22 million tonnes.

Before sugar export was brought under OGL earlier this month, the government had allowed export of 2 million tonnes of sugar in view of higher production.

Earlier this month, the Food ministry, had notified the decision to remove the limit on sugar exports, a move that will help industry ship surplus sugar and clear cane payment arrears to farmers that have mounted to over Rs 10,000 crore.

According to the notification, effective from 11th May, there would be no quantitative restrictions on sugar exports and producers are not required to obtain export release order from the Food Ministry under OGL in the 2011-12 marketing year (October-September) till further orders.

However, the Commerce Ministry has asked millers to register the export contracts with itself to keep a track on quantity of shipments.