Sugar Mills In Maharashtra, UP To Gain On Exports .

With the India government allowing sugar exports to the tune of 5 lakh tons under the Open General License, sugar mills in Uttar Pradesh are most likely to purchase sugar from Maharashtra mills and export the same from Mumbai Port.

Clearly the low-cost-producing Maharashtra sugar mills would gain even as UP sugar mills can avoid incurring logistical costs.

In fact, the mills in Maharashtra are already receiving calls from UP sugar mills, reported The Economic Times.

Uttar Pradesh is a landlocked state whereas Maharashtra is by the coast and harbours India’s famous Mumbai port. This makes it convenient for the Uttar Pradesh sugar mills to source sugar at a lower cost from Maharashtra mills and ship the same from the Mumbai Port.

Further, the sugar mills in Uttar Pradesh owe the cane farmers in the State considerable arrears. Once the exports are through (media reports suggest that the sugar mills are yet to get official communiqué in this regard), the farmers would get a reprieve.

Down South India, sugar mills in Tamil Nadu have found their markets in Sri Lanka owing to the geographical proximity.

The small-sized mills in that State are able to survive as they can ‘boat’ the produce to Sri Lanka—small boats can reach Sri Lanka from Tamil Nadu in a matter of hours with the sweetener.

Source : commodityonline.com