Food Min suggests relaxation of sugar export norms for 2-2.5 MT export

Ministry suggests DGFT to direct port authorities for monitoring stock of export

The food ministry has suggested for waiving off prior registration norms for export of sugar from India.

The request has been made to the Directorate General of Foreign Trade to relax the registration norms following surplus sugar availability in the domestic market. This has resulted in slump in prices.

However food ministry has asked for relaxation of these norms for export of around 2-2.5 million tonne of sugar out of the existing stock without prior registration. This quantity has been suggested for the sugar season starting October 2013- September 2014.

It has further suggested to DGFT for directing the port authorities for monitoring the stock of export. According to officials, the export norms may be reviewed after the export quantity reaches 2 mt as per the then prevailing conditions. It is expected that these norms will be eased soon, officials added.

As per the latest and final estimates available with the ministry, the sugar productivity is expected a tad less than last year at 235-245 lakh tonnes for the new sugar season Oct-Sept, 2013-2014. According to officials, the area under cultivation has shrunk a bit to 4.92 million hectares as against 5.03 million hectares last season.

 As per the relaxation of registration norms, the food ministry has also sought waiver of penal provisions in case there is default in export. Under the current guidelines, every export should first register the quantity to be exported.

If the exporter fails to export the registered quantity within the stipulated time, he may be barred from further registration. In addition, penal action will be imposed as per which he will be pay at least Rs 10,000 but not more than five times the value of the goods.

While acreage and production is expected to be in line in major sugar growing state like Maharashtra, Uttar Pradesh, and Karnataka but a major decline is expected in Tamil Nadu, which may give 15% lower production of 16.4 lakh tonne, as compared to last year’s production of about 19 lakh tonne sugar.

 India is the largest consumer of sugar and second largest producer after Brazil.