Govt to decide sugar exports for 2011-12 after Diwali

The government today said it would consider permitting sugar exports for the current marketing year, which started this month, only after the Diwali festival.

In the 2010-11 marketing year (October-September), the government had allowed exports of 2.6 million tonnes of sugar.

"We will take a call on sugar exports for the current marketing year after Diwali [which is on October 26]," Food Minister KV Thomas said.

Exports will be allowed in phases and the quantity of outbound shipments will be decided after reconciling the production estimates for 2011-12, he said.

Thomas, who briefed Finance Minister Pranab Mukherjee today on sugar, among other issues, said: "There is a difference of 4 lakh tonne between the estimates of Food and Agriculture Ministries. We will get correct picture about sugar output after the festival season, that is end-October."

Last month, the Food Ministry had pegged sugar output at 24.6 million tonne for the year from 24.3 million tonne in 2010-11. The ministry's estimates are, however, lower than the Agriculture Ministry's estimate of 25 million tonne.

Cooperative sugar industry body National Federation of Cooperative Sugar Factories (NFCSF) had demanded that the government should allow 4 million tonnes of export in 2011-12 to help mills dispose of surplus production and arrest falling domestic prices.

Thomas also said the availability of the sweetener for the current month was sufficient to meet the demand and the retail prices were ruling stable.