Sugar mills seeks export release orders, Government says mills slow in applying for sugar export orders

NEW DELHI: Sugar mills have sought export release orders from the Food Ministry for only about one-third of the total 4.45 lakh tonnes of shipment permitted by the government, though the deadline expires this week.

With effect from April 19, the government allowed export of 4.45 lakh tonnes of sugar under open general licences ( OGL). The quota was allocated to 490 mills on the basis of their average production during the last three years.

As per the notification, the last date for submission for applications by mills opting to export sugar from their own production is May 18. However, the deadline for mills opting to source sugar for export from other factories is June 2.

"Mills have been slow in applying for export release orders. It seems they have lost interest in exports," a senior Food Ministry official told PTI.

So far, the Food Ministry has received applications for 1.6 lakh tonnes of sugar, of which it has issued export release orders for only 1.43 lakh tonnes, the official said.

A release order from the Food Ministry is mandatory for mills to undertake export of sugar.

"There is hardly any time for mills who want to export sugar from their own production. However, there is some breather for mills who want to undertake export by sourcing sugar from the third party," the official added.

The official explained that not many cooperative mills have applied for export release orders yet because they are still processing tenders to finalise an export agency to undertake shipments.

The government has allowed 4.45 lakh tonnes of export under the OGL as the country's production is expected to be higher, at 24.5 million tonnes, in the 2010-11 season (October-September), whereas demand is pegged at 22 million tonnes.