Commission for Agricultural Costs and Prices Favours Sugar Export to Help Mills pay High Cane Price.

NEW DELHI: The Commission for Agricultural Costs and Prices, which suggests support prices for agri- commodities to the Centre, today said exports of 2-3 million tonnes of sugar should be allowed immediately to help mills pay higher cane price to farmers.

The Uttar Pradesh government had recently announced a hike of up to Rs 40 per quintal in State Advisory Price (SAP) of sugarcane to Rs 250 per quintal.

"My feeling is, if we export 2-3 million tonnes then our prices can take a lift and factories will be in a position to pay what the hike of SAP is.

"The domestic price of sugar has to improve if this price has to be given to cane growers," the Commission for Agricultural Costs and Prices (CACP) Chairman Ashok Gulati told PTI in an interview.

If farmers in Uttar Pradesh, which normally has 9.5 per cent sugar recovery ratio, get Rs 250 per quintal of sugarcane, then farmers in Maharashtra, which has higher recovery ratio of 11.3 per cent, should get at least Rs 280 per quintal, he said.

"To justify these prices, the wholesale price of sugar has to improve to Rs 37-38 per kg from existing Rs 27 per kg. If that does not happen, mills will be under a lot of pressure to make payment to farmers," Gulati noted.

The CACP, which was founded in 1965, is a statutory body and advises the government on the pricing policy for major farm items. Generally, the government accepts its suggestions.

Pointing out that the sugar prices in the global markets show a declining trend from December-January, Gulati said the country needs to export quickly.

"At present, sugar prices in the international market are still better than India. So, there is a possibility of export. This window of opportunity will not last for too long. Our feeling is that by December-January, the forecast for international prices, they will be coming down," he said.

Gulati added that if India fails to export sugar at the right time, it would lead to huge pile up of stocks and cane arrears.

Recently, Agriculture Minister Sharad Pawar had said expressed similar views, "There is surplus sugar. This is a golden time for India to enter the global market in a big way and get a better price, which will ultimately be provided to cane-growers."

Source : economictimes.indiatimes.com