Government to allow sugar exports of another 1 MT under Open general license

NEW DELHI The government on Monday decided to allow the export of another 1 MT of sugar under the Open general license.

The decision was taken in the meeting of the panel of empowered group of ministers which also decided to continue the export of non-basmati rice and wheat. The country so far has exported 3.69 MT of non-basmati rice and 5.92 lakh tonnes of wheat.

With this decision, the government so far has allowed export of 3 MT sugar in this season in three tranches of 1 MT each. The total production stands at 25.197 MT while the consumption, including 2 MT of sugar exports, stand at 24.153 MT.

There was surplus of 1.642 MT of sugar as on Monday, giving room to the government to allow the shipping of more sweetener. “This will augment liquidity of sugar mills so as to ensure them to pay cane arrears in time.

In 2010-11, the government had allowed export of 2.61 MT of sugar under various categories,” a government official who was present in the meeting said. The cane arrears pending with sugar mills are estimated to be around Rs 6,000 crore in 2011-12.

The government has also decided to relax procedures and norms of sugar export to expedite the exports. “Under the present norms, exports are happening in lower quantity within the stipulated time. Small firms are selling their permits to bigger firms.

We are modifying the modalities in consultation with commerce ministry to make norms more export friendly. Details are being worked out,” said a food ministry official.

The government has also extended time period of the export of 6.5 lakh tones of wheat flour for another year. The panel of ministers has also extended subsidised pulses distribution scheme for another three months.

The scheme, under which a subsidy of Rs 10 is being offered on purchase of every 1 kg pulse through public distraction system, was to end on March 31, 2012.

“The CAG has raised concerns over the distribution mechanism. We have extended this scheme for three months to arrive at proper distribution modality. If it works, we will continue the scheme,” said the official.