Govt may consider further sugar exports

The government may consider allowing further exports of sugar after assessing the impact on retail prices due to shipment of 1 million tonnes of the sweetener, Food Minister KV Thomas said today.

Thomas was speaking to reporters after meeting Maharashtra Chief Minister Prithviraj Chavan who demanded that the central government allow sugar exports of an extra 2 million tonne.

"We are watching the situation. It [export] can only be allowed after considering the prices of sugar in the domestic markets," Thomas told reporters here.

The government has allowed 1 million tonne of sugar export under the open general licence in two tranches since April, this year, in view of higher domestic production.

"The Maharashtra CM has sought an additional sugar export of 20 lakh tonne, citing the reason that the domestic output in this season is expected to touch 245 lakh tonne," he said.

The domestic sugar demand is around 21-21.5 million tonne annually, while the current production estimate is 24.5 million tonne. This leaves an extra sugar of around 3-3.5 million tonne, the minister said.

"The states want more exports considering the global sugar prices, but the government can consider this quantity for export keeping in mind the domestic situation as well as the coming festival season," he said.

India's sugar production is estimated to rise to 24.2 million tonne in 2011-12 season (October-September) against around 19 million tonne in the previous year.

According to industry data, mills have produced around 24 million tonnes of sugar till June 15 of the 2010-12 season.