Govt to decide on allowing sugar exports in early Nov

NEW DELHI: The government today said it will take a decision on allowing sugar exports in the 2011-12 marketing year in the first week of November, after assessing global prices and reconciling local production estimates.

In the 2010-11 marketing year (October-September), the government had allowed exports of 2.6 million tonnes of sugar.

"I will take a decision on sugar exports in the first week of November after evaluating our production estimates, the international and domestic price situation," Food Minister K V Thomas told reporters on the sidelines of an event here.

Yesterday, the minister had said that sugar exports will be allowed in phases and the quantity of shipments will be decided after reconciling this year's production estimates.

Thomas also said that the production forecast for sugar in 2011-12 will be reconciled and finalised after meeting Agriculture Minister Sharad Pawar in the next few days.

Last month, the Food Ministry had pegged sugar output at 24.6 million tonnes for the year, up from 24.3 million tonnes in 2010-11. The ministry's estimates are, however, lower than the Agriculture Ministry's estimate of 25 million tonnes of sugar production.

The sugar industry has estimated production of 26-26.5 million tonnes of sugar this year.

Industry body National Federation of Cooperative Sugar Factories Ltd (NFCSF) had demanded that the government allow four million tonnes of sugar exports in 2011-12 to help mills dispose of surplus production and arrest falling domestic prices.

Thomas also said availability of the sweetener is sufficient to meet demand in the current month and retail prices are ruling stable.