Export rule change may not impact prices

MUMBAI: The government's decision to lift controls over sugar exports is unlikely to impact the quantum of sugar exports or the prices. The decision, taken last week, allows mills to sell as much as they want without seeking export permits.

Oudh Sugar Mills chairman C S Nopany said there will be no immediate effect on exports as the exporters are already being encouraged to sell freely in export markets. He said global prices depend more on the quantum of exports and the demand-supply situation. "Brazil will govern the international prices and not India," Mr Nopany added.

The ban on sugar exports, enforced last July, was lifted this January, But sugar mills and exporters had take permits.

Balrampur Chini Mills MD Vivek Saraogi also feels that there will be no impact on the sugar exports. "This is a procedural change and not a policy change," Mr Saraogi said. Maharashtra State Co-operative Sugar Factories Federation MD Prakash Naiknavare though said since an operational hurdle has been removed there would be both qualitative and quantitative impact on the exports.