| Date: |
03-11-2010 |
| Subject: |
Sugar Exports May Begin Next Month |
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NEW DELHI: Sugar exports are set to begin next month with the government likely to expedite the processing of applications from sugar mills for release of about 5 lakh tonne of sugar for exports .
It is likely that the release order for export of sugar under the open general licence will be phased out over a period to ensure that substantial quantity of sugar does not get exported at one go.
"We now expect to have enough leeway to accomodate all stakeholder obligations even as we allow industtry to export to strengthen their finances," an official in the know said. Last week, food minister Sharad Pawar suddenly upped, for the first time, sugar estimates for this year by 1.5 million tonne to 25 million tonne, at par with industry estimates .
Large exports from India could swiftly depress global sugar prices, frittering away the very advantage that the sugar
mills and exporters from here hope to gain . This is the first time in nearly 15 years that the Indian sugar industry finds itself in a position of projected plenty even while the global market is experiencing supply tightness and firm prices. Raw sugar has risen to a 29-year high in New York on the apprehensinon that India may not allow too much exports. White, or refined, sugar for March delivery closed at $751.10 a tonne on NYSE Liffe in London by October end.
The industry expects to produce nearly 25 million tonne of sugar this year and given the temptingly high prices outside, it is loathe to miss the chance to export and firm up its bottomline expeditiously.
Farm minister Pawar has been pro-actively in favour of free sugar exports.
"The concern here is that phased export quantities could be very low and shared among too many mills including those that will not import such as coop sugar mills in UP," an industry insider said. Exports rules were tightened in February 2009 through a stringent control of release orders after a drop in sugar production to 14.7 million tonne in the 2008-09 (October-September ) sugar year.
Source : economictimes.indiatimes.com
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