Food EGoM to meet tomorrow to decide on sugar exports

At the behest of Agriculture Minister Sharad Pawar, the Empowered Group of Ministers (EGoM) on food has decided to meet on June 23 to take a call on allowing the export of more sugar. Although Pawar will not be present at the meeting, as he is travelling, he wants the EGoM to meet and allow additional exports of at least one million tonnes of sugar.

Pawar’s absence has forced the government to defer meeting of the EGoM on oil prices at least twice during the past few weeks. The oil EGoM is expected to decide on the issue of an increase in diesel, kerosene and LPG prices. But for the food EGoM, Pawar has been proactive: Today, he sent a two-page note to the Prime Minister’s Office, finance ministry and the Cabinet Secretariat. While elaborating his stand of the issue of sugar exports, Pawar has urged the government to hold the meeting, even in his absence, and decide on the issue.

As the agriculture minister has expressed his stand in the note, the Cabinet Secretariat has asked the finance ministry to convene a meeting of the EGoM.

The meeting was also expected to discuss other issues, sources indicated.

Food Minister K V Thomas, however, is opposed to any immediate relaxation in the volume of sugar to be exported. While Pawar is known to be in favour of further exports, Thomas recently said no further export of sugar should be allowed before Diwali.

India’s sugar mills have sought permission from the government to allow additional sugar export as output is expected to rise in the next season from October, Abinash Verma, head of Indian Sugar Mills Association, said.

In April this year, the government had allowed 500,000 tonnes of sugar to be exported under the Open General Licence (OGL), which means the movement of shipments without any restriction. Of this, 50,000 tonnes has to be exported through government agencies.

Sugar production in India, the world’s second-largest producer and the biggest consumer of the commodity, is estimated at 24.2 million tonnes in 2010-11 season, compared to 18.8 million tonnes in the previous season. In the 2011-12 season, the production is estimated to be at 26-26.5 million tonnes.