NEW DELHI (MarketWatch) Indian sugar mills Monday asked the government to allow more sugar exports this marketing year and to loosen controls over distribution and supplies in the tightly regulated sector.
Industry representatives met Finance Minister Pranab Mukherjee to seek exports of at least two million more metric tons until the end of March, Abinash Verma, director general of the Indian Sugar Mills Association, told Dow Jones Newswires.
India has already allowed one million tons of sugar exports in the marketing year that began Oct. 1 after a bumper crop. Recently, Food Minister K.V Thomas told Dow Jones Newswires that a ministerial panel is likely to consider more exports.
If the government were to allow more exports through March, then the industry might ask for more shipments later. The country's 2011-12 sugar output is expected to rise to between 24.6 million tons and 26 million tons, while its annual consumption is around 22 million tons.
Verma said the industry has urged the government to scrap a system within which mills have to set aside 10% of their output for subsidized sales every month, thereby crimping their profits. "The finance minister has assured us that he will consider all our demands," Verma said. He said the minister has said the issue will be discussed at a meeting of a ministerial panel.
Source : marketwatch.com