Govt notifies procedures for 5 lakh tonnes sugar export via OGL

The government has notified procedures for regular export of 5,00,000 tonnes of sugar, out of which the country's top two makers Bajaj Hindustan and Balrampur Chini have got permission to ship over 33,000 tonnes.

 "The export quota of five lakh tonnes has been pro-rated among sugar factories by taking into account their three years' average production," as per the circular issued by the Food Ministry.

In case of a factory that has not operated in one of the three years, the export quota has been arrived on the basis of two year's average production, it said.

Last year's sugar production has been taken into account for those mills which started operation in 2009-10 sugar year (October-September), the circular added.

With sugar output estimated to cross the annual demand of 23 million tonnes, Food and Agriculture Minister Sharad Pawar had recently announced that the government would export five lakh tonnes of sugar under the open general licence (OGL) scheme to benefit from high global prices.

OGL is a permit the government gives to mills to export sugar without any restriction and conditions.

The export under OGL would be over and above the export obligation of about 1.5 million tonnes of sugar via the Advance License Scheme (ALS) and imported stocks stuck at ports.

In order to give equal export opportunity under OGL, the Food Ministry has fixed the quota between 40 and 3,000 tonnes per mill to more than 500-odd sugar factories.

The government has fixed the export quota of 18,812 tonnes for Bajaj Hindustan, while that of 14,436 tonnes for Balrampur Chini. Leading sugar refiner Renuka Sugars has been allowed to ship nearly 5,000 tonnes of sugar.

The mills have to export sugar produced in the 2010-11 sugar year in their own factory or can source the sweetener from other factory to minimise transporation costs, it said.

India, the world's second biggest sugar producer but largest consumer, is estimated to produce 24.5 million tonnes of sugar in the 2010-11 crop year, as against 19 million tonnes last year.