Maharashtra co-op sugar mills to get higher export price
Sugar co-operative mills in Maharashtra will now get an export price of Rs 1,320 per quintal delivery at JNPT port.
By NIDHI SHARMA, TNN |
MUMBAI: Sugar co-operative mills in Maharashtra will now get an export price of Rs 1,320 per quintal delivery at JNPT port, as against the earlier price of Rs 1,300 ex-mill. The new price was decided by the export cell under the aegis of state sugar commissioner on Tuesday which changed the basis of export floor price from ex-mill to FOR (free on rail). “We expect that about two lakh tonnes of deal would take place this week and next week after a review we will decide our strategy,” Maharashtra State Co-Operative Sugar Factories Federation MD Prakash Naiknavare told ET.
Mr Naiknavare further said that this week would give further clarity about the export subsidy availability and its modus operandi that will then be taken into consideration. The government had earlier announced a $30 per tonne subsidy for sugar export but the notification is yet awaited.
“The export cell is very keen that this export subsidy amount goes to the sugar mills’ account so as to enable them to partially meet the losses that they otherwise were to incur in the exports without subsidy support,” he said. At the earlier meeting in the past week, export floor price was ex-mill Rs 1,300 per quintal in range of 250 km from the port, Rs 1,290 in range of 250-350 km away from port and Rs 1,280 per quintal beyond 350 km.
Mr Naiknavare said that the decision to change the basis of floor price was taken after reviewing the situation and it was observed that only two deals could took place with ex-mill price and therefore a full review of the situation was taken. He said that this decision holds importance in light of the fact that JNPT operations for bulk break exports is available only till start of monsoon after which only containerised exports are possible which would add cost. The decision was also vital as the markets for Indian white sugar is fast drying up and new arrivals from Brazil are around the corner. The meeting was attended by 15 exporter representatives from various international houses which was followed by a joint meeting with the 100 sugar mills from Maharashtra.
Mr Naiknavare further said that this week would give further clarity about the export subsidy availability and its modus operandi that will then be taken into consideration. The government had earlier announced a $30 per tonne subsidy for sugar export but the notification is yet awaited.
“The export cell is very keen that this export subsidy amount goes to the sugar mills’ account so as to enable them to partially meet the losses that they otherwise were to incur in the exports without subsidy support,” he said. At the earlier meeting in the past week, export floor price was ex-mill Rs 1,300 per quintal in range of 250 km from the port, Rs 1,290 in range of 250-350 km away from port and Rs 1,280 per quintal beyond 350 km.
Mr Naiknavare said that the decision to change the basis of floor price was taken after reviewing the situation and it was observed that only two deals could took place with ex-mill price and therefore a full review of the situation was taken. He said that this decision holds importance in light of the fact that JNPT operations for bulk break exports is available only till start of monsoon after which only containerised exports are possible which would add cost. The decision was also vital as the markets for Indian white sugar is fast drying up and new arrivals from Brazil are around the corner. The meeting was attended by 15 exporter representatives from various international houses which was followed by a joint meeting with the 100 sugar mills from Maharashtra.
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