'Sugar export sops should not be extended to all'

PUNE: The central government could come out with transport facility and other subsidies to give a fillip to sugar export, in a move that would benefit sugar mills across the country.

Against this backdrop, there is also some concern among a section of millers, particularly in Maharashtra, that those who carry an obligation to export sugar — having imported raw sugar duty free two years ago — could avail the said subsidy.

Hence, the demand that such exporters, with unfulfilled export obligations, be kept out of the purview of any such scheme is getting shriller by the day.

Two years ago, 20 lakh tonnes of raw sugar were imported duty free into the country under the Advance Licence Scheme. The mills had an obligation to re-export that sugar within the year, and close to half that amount, 10 lakh tonnes, was duly exported.

However, once the government imposed a ban on the export of sugar, this obligation could not be fulfilled, and this sugar found its way into the domestic market.

Kanhaiyalal Gidwani, president, coordination committee of consumer affairs, marketing, industry and commerce, Maharashtra Pradesh Congress Committee (MPCC), has drawn the attention of the central ministers concerned to these stark facts.

In a letter addressed to the Prime Minister as well as agriculture, finance and commerce ministers, Mr Gidwani has demanded that such exporters should not be allowed any export subsidy.

He has noted that these mills had already benefited, having been given a time extension in which they must export and allowed to divert the processed sugar into the domestic market. Now, these mills could also stand in line for a subsidy to fulfil an existing obligation.