Govt Issues Export Release Orders For 3.39 Lakh Tonne Of Sugar.

The Food Ministry has issued export orders for 3.39 lakh tonnes of sugar to mills so far, out of the total quantity of five lakh tonnes that the government had allowed for overseas shipments, in April.

Sugar mills cannot export the sweetener without a release order from the Food Ministry.

On March 22, an Empowered Group of Ministers (EGoM) on Food, headed by Finance Minister Pranab Mukherjee, had allowed mills to export five lakh tonnes of sugar under Open General Licences (OGL). The decision was notified on April 19.

Out of five lakh tonnes, 51,500 tonnes was reserved for neighbouring countries and the remaining 4,48,500 tonnes was allocated to the mills based on their average output over the last three years.

According to the latest data, the ministry has issued export release orders for 3,39,187 tonnes till June 1.

The EGoM had decided to allow sugar exports with a quantity restriction of five lakh tonnes as the country''s output is estimated to cross domestic consumption after a gap of two seasons.

Prior to this, the government had allowed mills to fulfill their export obligation of about one million tonnes.

Sugar production in India -- the world''s second largest producer after Brazil -- is estimated to rise to 24.5 million tonnes in the 2010-11, sugar year (October-September) from 19 million tonnes in the previous year. The country''s annual demand is pegged at 22 million tonnes.

In the 2008-09, and 2009-10, sugar production was below domestic consumption, at 14.53 million tonnes and nearly 19 million tonnes, respectively. The country had to import about six million tonnes of sugar to meet the shortfall.

Source : in.news.yahoo.com