As sugar stocks pile up, Centre asks producers to export 40 lakh tonnes

NEW DELHI: In its bid to deal with the huge stockpile of sugar in India, which is mainly responsible for its price crashing and the poor health of the industry, the food ministry on Friday set the minimum indicative export quota (MIEQ) for manufacturers to export 40 lakh tonnes during the next sugar season starting next month.

Millers in Uttar Pradesh have to export 10 lakh tonnes while manufacturers in Maharashtra will need to export 13 lakh tonnes. The move comes at a time when India is set to produce surplus sugar for the sixth straight year. According to estimates, 358 lakh tonnes of sugar will be available during 2014-15 while the total domestic consumption is pro jected at 284 lakh tonnes. In this context the government decision for mandatory export of the sweetener is being seen as a major intervention to reduce the glut in the sector.

In its notification, the food ministry said, "In view of the inventory levels with the sugar industry and to facilitate achievement of financial liquidity and enable industry to achieve long run viability," the MIEQ has been specified.

It added that the quota for each factory has been fixed by taking into account their average sugar production of three years including current and last two sugar seasons. The manufacturers have to submit the details with proof of their export within six months from the date of last shipment. Failure of this norm will be treated as violation of government notification.

Abinash Verma, director general of the apex body of sugar industry (SIMA), said, "Exports from India continues to remain unviable, for which the industry will look up to the government for help."