Food Min favours more sugar exports up to 1 mn tonne

With upward revision in the sugar production estimates, the government may allow further exports of up to 1 million tonne of sweetener in the ongoing marketing year ending September this year.

The government has already allowed 2 million tonne of sugar exports in the 2011-12 marketing year in two equal tranches, as the country's sugar output is all set to exceed domestic consumption.

"We will have bumper production of sugar in this season. So, more exports can be allowed," a senior Food Ministry official told reporters here.

The proposal to allow further exports of up to 1 million tonne could be placed before an empowered Group of Ministers (eGoM) on food by end of this month or early April, he added.

Recently, Agriculture Minister Sharad Pawar, too, had said there was a scope for additional 1 million tonne of sugar exports.

Based on the inputs of Cane Commissioners of all sugar producing states, the food ministry recently revised upwards the sugar production estimates to about 25.2 million tonne from the earlier projection of 24.6 million tonne for this marketing year.

The annual domestic demand is seen at 22 million tonne.

However, the industry has pegged the sugar output at 26 million tonne in 2011-12 against 24.3 million tonne in the previous year.

India, the world's second largest producer of sugar and biggest consumer, had exported 2.6 million tonne of sugar in the previous marketing year.

In case of wheat and non-basmati rice, the official felt that exports should continue as the country has bumper foodgrains stock in government godowns.

"We don't have any problem in continuing exports of wheat and rice as production is good and stocks are comfortable," the official said.

Wheat and non-basmati rice exports were allowed in September last year under Open General Licence (OGL). Since then, the country has exported 3.5 million tonne of rice and 5,75,000 tonne of wheat.

Although exports of non-basmati rice is allowed under OGL, the food ministry is continuously monitoring the shipments and decided to review exports once it reaches 4 million tonne.

India is estimated to have harvested a record 88.31 million tonne of wheat and 102.75 million tonne of rice in the 2011-12 crop year (July-June).