Maharashtra govt, co-operative industry hail decision on sugar export

The Centre’s decision on Tuesday to allow exporting one million tonnes (mt) of sugar invited cheer from both the Maharashtra government and the co-operative industry of state which manufactures the product on a massive scale.

Chief Minister Prithviraj Chavan, who had recently appealed to the union government to allow two million tonnes of sugar exports, said the decision would give some relief to the co-operative sugar industry which is in dire straits. “I did speak to the prime minister, besides the ministers of finance, agriculture, food and commerce before on Tuesday’s meeting of the empowered group of ministers. I had reiterated our plea for allowing sugar exports,” he told Business Standard.

The state’s co-operative sugar industry, too, welcomed the Centre’s decision, but pleaded that the quantity should go up to five mt during the current crushing season. The Federation of Cooperative Sugar Factories, a representative body of over 200 mills, said such a step was necessary. Reason: “it will help mills realise more considering the current global sugar market”, according to federation chairman Vijaysinh Mohite-Patil.

Maharashtra, which is the country’s sugarcane state, has revised its sugar production to 8.7 mt from the original estimate of 9.3 mt in the current crushing season. However, it has also a carry-forward stock of 3.4 mt that was valued at Rs 9,000 crore.

The Maharashtra Sugar Brokers Association said on Tuesday’s decision would help sugar factories secure a better realisation as compared to domestic sugar prices that hovered around Rs 2,800-3,000 per quintal ex mill. “Due to the depreciation of rupee, sugar factories will get Rs 300 per quintal,” according to Yogesh Pande, its founder-president.