Sugar industry seeks long-term policy to prop up exports
The sugar industry has demanded a long-term policy to be able to export regularly irrespective of variations in output.
By PTI |
NEW DELHI: The sugar industry has demanded a long-term policy to be able to export regularly irrespective of variations in output, saying the irregular nature of sugar shipments from India is resulting in a low price realisation.
"Generally, importing countries do not look upon the Indian exporters as a reliable long-term supplier. Naturally, Indian exporters suffer from handicap, which is reflected in the price realisation for Indian sugar," Indian Sugar Mills Association (ISMA) Director-General SL Jain said.
Jain said Indian sugar sells at a discount of almost $100 per tonne against the international price. Though it is admittedly of a bit inferior quality than the refined sugar abroad, the huge price variation is not justified, he said in the monthly newsletter of ISMA.
The Centre in 2006 had banned export of sugar which was lifted only in January 2007 after a gap of six months though India produced a record output of 28.3 million tons in the 2006-07 season (October-September). The ban in the first crucial three months had badly affected exports in 2006-07 season and the overall shipment in the entire season was 1.8 million tons.
The industry has suggested that a piece of legislation be framed by the government, providing for a minimum export of sugar per annum, irrespective of variations in the indigenous sugar production. "While prescribing such minimum obligation on individual basis, it should be left to the sugar factories to make additional exports, should they so desire," Jain said.
"Generally, importing countries do not look upon the Indian exporters as a reliable long-term supplier. Naturally, Indian exporters suffer from handicap, which is reflected in the price realisation for Indian sugar," Indian Sugar Mills Association (ISMA) Director-General SL Jain said.
Jain said Indian sugar sells at a discount of almost $100 per tonne against the international price. Though it is admittedly of a bit inferior quality than the refined sugar abroad, the huge price variation is not justified, he said in the monthly newsletter of ISMA.
The Centre in 2006 had banned export of sugar which was lifted only in January 2007 after a gap of six months though India produced a record output of 28.3 million tons in the 2006-07 season (October-September). The ban in the first crucial three months had badly affected exports in 2006-07 season and the overall shipment in the entire season was 1.8 million tons.
The industry has suggested that a piece of legislation be framed by the government, providing for a minimum export of sugar per annum, irrespective of variations in the indigenous sugar production. "While prescribing such minimum obligation on individual basis, it should be left to the sugar factories to make additional exports, should they so desire," Jain said.
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