Sugar output seen at record high this year
Sugar output seen at record high this year In a move that is likely to raise prices of sugar in the local market, the government may allow export of up to 2m tonnes of sugar.
By TNN |
Prabha Jagannathan
NEW DELHI: Sugar output seen at record high this year In a move that is likely to raise prices of sugar in the local market, the government may allow export of up to 2m tonnes of sugar.
The sugar industry seems to be in favour of the move. “We’ve already lost a crucial one month in export opportunities since cane crushing season began in October. We’ll be travelling backwards in the development of the industry if the ban persists and sugar cane cannot be crushed,” said Indian Sugar Mills Association (ISMA) DG SL Jain. The Indian sugar industry exported about 2 lakh tonnes of sugar every month before the ban was imposed in July.
“To manage the sugar economy effectively at this juncture, we need imperative export of around 3m tonnes of sugar at the earliest,” trade sources said. For the ’06-07 sugar season, a record production of 22.7m tonnes of sugar is projected as compared to only 19m tonnes of sugar in the ’05-06 season.
That, according to the food ministry, makes it imperative for the government to offload at least 3m tonnes into the export market to prevent a glut in the domestic market and distress sales and poor payment to sugarcane farmers.
What is likely to be used to buttress the pro-exports argument at least with the finance ministry at the CCP tomorrow is the current assessment within the government that post-festival season, sugar prices have stabilised at Rs 1,925-1,950/q countrywide, except in individual pockets.
NEW DELHI: Sugar output seen at record high this year In a move that is likely to raise prices of sugar in the local market, the government may allow export of up to 2m tonnes of sugar.
The sugar industry seems to be in favour of the move. “We’ve already lost a crucial one month in export opportunities since cane crushing season began in October. We’ll be travelling backwards in the development of the industry if the ban persists and sugar cane cannot be crushed,” said Indian Sugar Mills Association (ISMA) DG SL Jain. The Indian sugar industry exported about 2 lakh tonnes of sugar every month before the ban was imposed in July.
“To manage the sugar economy effectively at this juncture, we need imperative export of around 3m tonnes of sugar at the earliest,” trade sources said. For the ’06-07 sugar season, a record production of 22.7m tonnes of sugar is projected as compared to only 19m tonnes of sugar in the ’05-06 season.
That, according to the food ministry, makes it imperative for the government to offload at least 3m tonnes into the export market to prevent a glut in the domestic market and distress sales and poor payment to sugarcane farmers.
What is likely to be used to buttress the pro-exports argument at least with the finance ministry at the CCP tomorrow is the current assessment within the government that post-festival season, sugar prices have stabilised at Rs 1,925-1,950/q countrywide, except in individual pockets.
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