Additional sugar exports unlikely: KV Thomas

NEW DELHI: Food Minister K V Thomas today said he is not favour of additional sugar exports to ensure sufficient supplies for meeting festival demands in the coming months.

"We are not in favour of additional sugar export because we need sugar during the festival season," Thomas told reporters here.

So far, the government has allowed export of 1 million tonnes of sugar in two tranches under the open general licence (OGL). However, industry representatives and Maharashtra Chief Minister Prithviraj Chavan had met Thomas last month to demand further export of 1.5 million tonnes.

There is an excess of over five million tonnes of sugar in the country even after allowing OGL exports. The demand for sugar is generally higher during the festival season and the surplus sugar is required to meet the festive demand, he said.

Out of the 1 million tonnes of sugar, the government has issued the release order for around 5 million tonnes, he added.

Sugar production in India, the world's second largest producer after Brazil, is estimated to rise to 24.2 million tonnes in the 2010-11 season after a gap of two years, as compared to 18.8 million tonnes last season.

So far, mills have produced over 24 million tonnes of sugar, as per industry data.

India, the world's biggest consumer of sugar, requires 22.5 million tonnes of sweetener annually.

According to official data, retail price of sugar in Delhi is ruling at Rs 30-32 per kg.