Sugar body seeks clarity on export to neighbour countries

Indian Sugar Mills Association (ISMA) has sought clarity from the government on export of 51,500 tonne of sugar to neighbouring countries.

Last week, the Food Ministry notified export of 5,00,000 tonne of sugar under open general licence. Of this 51,500 tonne was reserved for export to neighbouring countries.

"We have requested the Food Ministry for clarity on 51,500 tonne that has been decided for exports to the neighbouring countries," ISMA Director General Abinash Verma told PTI.

The clarity has been sought on the name of the neighbouring countries and the quantity to be shipped to those nations, he said.

"We have also requested to lay down the procedures for allocation of 51,500 tonne among exporters/mills," he added.

The Food Ministry has allocated 4,48,500 tonne (of the total 5 lakh tonne) of sugar to mills for exports based on their average production in the last three years.

The government has allowed exports as the country's sugar production is estimated to outstrip demand this year.

According to ISMA projections, sugar production is likely to touch 25 million tonne in the 2010-11 season (Oct-Sept) as against around 19 million tonne last year.

The government on its part estimates sugar production to be 24.5 million tonne, as against the country's annual demand of 22 million tonne.