Millers to govt: Allow export of imported sugar piled due to railway wagon shortage.

New Delhi: Sugar millers want the government to allow export of imported sugar which has piled up at a key port due to a shortage of railway wagons, the chief of the main producers’ body said on Thursday.

Traders say about 750,000 tonne of sugar is stranded at the western port of Mundra because the railways have been asked to use their wagons for transporting fertilisers inland.

“We have ample sugar now. It makes sense for the government to permit mills to export imported stocks rather than let sugar pile up at ports,” Vivek Saraogi, president, Indian Sugar Mills Association (Isma) said.

Some trade officials say the farm ministry has requested the railways help move sugar stocks from ports. India, the world’s top consumer and second-biggest producer, last year allowed duty-free imports of sugar to step up supplies.

The Isma last month said total imports in the year to September 2010 were likely to be 4.53 mt of raws and 0.99 mt of whites.

Output in the next season from October was expected at 25.5 mt from 18.8 mt in 2009/10 as higher domestic sugar prices in 2009 and early this year will encourage farmers to grow more cane, Isma officials say.

“With higher production this year and fairly good estimates for the next year, we must export without any delay,” Saraogi said.

Many industry officials believe that Indian mills can capitalise on Asian demand.

“There is an opportunity to export now,” said MN Rao, deputy director-general, Isma. “What is the point of allowing exports when there will be no demand in the region?” he asked.

Source : financialexpress.com