Govt lifts quantitative ceiling on organic sugar export

India's annual organic sugar production is estimated to be around 10,000 tonnes

To support the ailing sugar industry, the government on Saturday removed quantitative ceiling on organic sugar exports. The government had kept a ceiling of 10,000 tonnes on organic sugar exports. Getting sugar classified as organic is a cumbersome process. There are only two sugar mills in South India are certified producers of organic sugar.

“Consequently, lifting of quantitative ceiling will make no difference either on production or exports. Nor would it boost the farm sector or industry sentiment,” said Sanjay Tapriya, chief financial officer of Simbhaoli Sugar Mills Ltd.

Organic sugar, which is used for consumption and medicinal purposes, costs marginally higher than fair average quality (FAQ) variety of white sugar. While in export markets, organic sugar is priced $200 a tonne higher than FAQ variety, the same is sold at Rs 50-55 a kg compared with Rs 35-38 a kg of white sugar.

Before giving certification, state authorities have to first make sure that the sugar cane produced by farmers is organically produced — no chemical  fertiliser or pesticide is used. “Thus, the government’s decision to set organic sugar exports free from quantitative ceiling will have no impact at all,” Tapriya said. India’s annual organic sugar production is estimated at around 10,000 tonnes.