Govt to evaluate sugar output before deciding on more exports

NEW DELHI: The government today said it will look at prospects for allowing additional sugar exports under the Open General Licence (OGL) after receiving final production figures for the current season (October-September).

"Let the final output come, we will review it," Food Secretary B C Gupta told reporters when asked whether the government will allow more sugar exports under OGL.

The country has started allowing sugar export in 2010-11 season as domestic production is expected to oustrip demand.

Initially, the government allowed mills to fulfil the export obligation of nearly one million tonnes under the Advance Licence Scheme. Recently, export of 5,00,000 tonnes of sugar export under the (OGL) was also allowed.

The government has estimated sugar output in the ongoing 2010-11 season at 24.5 million tonnes, as against demand of 22 million tonnes.

Mills have produced 21.8 million tonnes of sugar till February 15 of the current season, as against 17.58 million tonnes in the same period last season, as per industry data.

Sugarcane crushing in Maharashtra, the country's top sugar producing state, is still continuing, while it is drawing close in Uttar Pradesh, the second biggest producing state.

In a latest report, the US Department of Agriculture has observed that India, the world's second biggest sugar producer, may export around 8,00,000 tonnes of sugar in the current season considering expected surplus production.