Govt gearing for sugar glut next year
The problem of plenty is likely to besiege the sugar sector next year with output slated to almost double to 230 lakh tonnes during 2006-07 as compared to the production achieved two years ago.
By PTI |
NEW DELHI: The problem of plenty is likely to besiege the sugar sector next year with output slated to almost double to 230 lakh tonnes during 2006-07 as compared to the production achieved two years ago.
Sugar production slumped to 120 lakh tonnes during 2004-05 forcing the government to come out with incentives to the sugar industry to enhance the domestic availability of the sweetener.
Sugar production during 2005-06 is expected to touch 191 lakh tonnes. (The sugar season begins in October and ends in September.)
Since the annual domestic consumption is around 180 lakh tonnes, the country could be left with excess stock forcing the government to think in terms of enhancing exports after the festival season in October, a senior food ministry official said.
The Ministry has so far given release orders for export of 13 lakh tonnes of sugar out of which 7 lakh tonnes have already been despatched abroad, the official said.
The export destinations include Pakistan, Indonesia and Middle East countries.
The official, however, ruled out any immediate push to sugar exports saying the government would wait for the coming festival season to get over to gauge the domestic sugar consumption level.
"We will have to adopt a very careful approach in terms of sugar exports and see how the domestic consumption during the festival season pick ups", the offical said adding the festival season would begin from October.
Sugar production slumped to 120 lakh tonnes during 2004-05 forcing the government to come out with incentives to the sugar industry to enhance the domestic availability of the sweetener.
Sugar production during 2005-06 is expected to touch 191 lakh tonnes. (The sugar season begins in October and ends in September.)
Since the annual domestic consumption is around 180 lakh tonnes, the country could be left with excess stock forcing the government to think in terms of enhancing exports after the festival season in October, a senior food ministry official said.
The Ministry has so far given release orders for export of 13 lakh tonnes of sugar out of which 7 lakh tonnes have already been despatched abroad, the official said.
The export destinations include Pakistan, Indonesia and Middle East countries.
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The official, however, ruled out any immediate push to sugar exports saying the government would wait for the coming festival season to get over to gauge the domestic sugar consumption level.
"We will have to adopt a very careful approach in terms of sugar exports and see how the domestic consumption during the festival season pick ups", the offical said adding the festival season would begin from October.
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