Sugar stuck at ports to be exported.

After allowing export of imported sugar stuck at Kandla port, the government is now considering a proposal to permit shipments from other ports since mills have not been able to sell the sweetener because of decline in retail prices in recent months. According to sources, the food ministry is looking into the proposals of sugar traders, whose consignments of sugar have been stuck at ports in Kakinada, Mumbai and Chennai.

“More that 300,000 tonnes of refined sugar is lying at Kakinada, Mumbai and Chennai ports as of now. Traders have not been able to lift the sugar due to higher cost,” a government official said.

The food ministry had recently permitted export of 200,000 tonnes of refined sugar from Kandla port in Gujarat provided they import an equal quantity of raw sugar, process and sell it in the domestic market within four months of the issue of an export release order.

The country has imported over 5 million tonnes of sugar since February 2009, to meet the shortfall. Meanwhile, millers are seeking government permission to export white sugar to help meet obligations made importing duty-free raws made almost five years ago. Millers say they are obliged to export 967,000 tonnes of sugar by March under a policy from 2004-05, when India allowed the duty free import of raws on condition that an equal quantity of white sugar be exported. But food and agriculture minister Sharad Pawar had said recently that the government would allow exports only after reviewing the progress of cane planting in August.

Source : fnbnews.com