Govt's Decision to help State Export 3 lakh tonne Sugar allow Sugar Export to Benefit State.

PUNE: The Union government's decision on Tuesday to allow sugar export from India is expected to benefit sugar factories in the state.

Managing director, Maharashtra State Cooperative Sugar Factories Limited, Ajit Chowgule said, "The empowered group of ministers on Tuesday evening decided to export 10 lakh tonne sugar of which three lakh tonne will be exported from Maharashtra."

He said, "The international market is currently favourable for exports, since sugar from Brazil will hit the market only by April 2012. The supply from Thailand has gone down because of the flood situation. Moreover, China is expected to procure 27 lakh tonne sugar from the international market as against previous year's 21 lakh tonne. The situation looks favourable for the Indian sugar industry."

A group of empowered ministers on Tuesday evening decided to open the export market for the Indian sugar industry allowing export of 10 lakh tonne sugar in the first round which is being termed as the largest quota sanctioned in one stroke.

"The total sugar availability in the country is 57.23 lakh tonne. The sugarcane crushing season has already started. With fresh supply of sugar replacing the existing stock, we can export sugar without creating a shortage in the domestic market," he said. The current international price for sugar is over Rs 32,000 per tonne, while the domestic price is around Rs 29,000 per tonne.

Sanjay Banerjee, head, media and communication of Indian Sugar Mills Association, which represents the entire sugar industry in the country, said, "We were demanding that 30 lakh tonne of sugar be exported, since the conditions are such that we can earn well in the international market. This in turn would help sugar factories in the country to pay their labourers. Maharashtra stands to gain also because of its proximity to ports which makes exporting an item easier."

Source : timesofindia.indiatimes.com