With hopes of higher sugar production in this marketing year from the earlier estimates,
the government on Monday said a proposal will soon be placed before a high-level ministerial panel to allow some quantities of sugar exports.
“We stick to our initial production estimate of 24.7 million tonnes in 2011-12 marketing year (October-September). But output can go up a little to 25 million tonnes,” Food
Minister K V Thomas told reporters after meeting Agriculture Minister Sharad Pawar to discuss issues related to sugar sector.
India’s sugar production stood at 24.3 million tonnes in the 2010-11 marketing year. For the current year, there has been some differences over production estimates between food
and agriculture ministries and also with industry bodies.
While, industry has pegged sugar production at 26 million tonnes, Pawar had said it would be 25 million tonnes. Thomas had estimated it at 24.7 million tonnes based on the reports from the major sugar-producing states.
Asked about exports for this marketing year, Thomas said: “On the basis of production, we will soon work out a scheme so that some quantity can be exported”.
He, however, made it clear that like last marketing year, the sugar exports would be allowed in tranches.
“The Food Ministry will prepare the modalities for exports in the current marketing year and will take up the proposal in the next meeting of empowered group of ministers
(eGoM),” Thomas said.
Both Pawar and Thomas had recently said that the decision on exports would be taken in the first week of November.
In the last marketing year, government had allowed exports of 2.6 million tonnes of sugar, out of which 1.5 million tonnes was under Open General Licence (OGL) in three
equal tranches.
Indian Sugar Mills Association (ISMA) is demanding exports of 4 million tonnes this year, out of which it wants 2 million tonnes in one tranche and at the earliest.
On stock-holding limits for the sweetener, the minister said, “We will lift the stock-holding limit on sugar and rice”. In the last eGOM, the stock-holding limit on these two
items was extended for two months till November.
Courtsey:PTI