NEW DELHI: The government on Tuesday decided to allow the export of more sugar and non-basmati rice, and lower the floor price of basmati exports to boost farm trade.
The panel of Empowered Group of Ministers (EGoM) on food agreed to allow export of another one million tonnes of sugar, reduce the minimum export price of basmati by 22%, and raise the limit on non-basmati rice exports from 2.2 million tonnes to 4 million tonnes. All the decisions will be sent to the Election Commission for approval.
The proposal to change the floor price for onion exports has been referred to an inter-ministerial group of ministers.
"The outlook is positive. We have to take view on all the issues. But we can't say anything before getting the nod from the Election Commission," food and consumer affairs minister K V Thomas said.
The decisions spread cheer among agri-business companies that have been grappling with low margins and dull demand in the last one year.
"With this extra quantity, industry will be able to bring in 3,000 crore, that would go towards clearing arrears in farmer payments," said Abinash Varma, director general, Indian Sugar Mills Association, an industry body. India expects to produce 26 million tonnes of sugar in 2011-12, while the annual domestic consumption is 22 million tonnes.
Rice exporters have been demanding a lower minimum export price to compete against chief rival Pakistan, which does not impose any floor price. "It will give us more competitiveness. Now we shall be able to export 2.5 million tonnes of basmati," said Vijay Setia, president, All-India Rice Exporters Association.
Source : economictimes.indiatimes.com