India exports over 1 lakh tn sugar even in deficit

India exported over 100,000 tonnes of sugar in the current season even as the government has allowed imports of 1 million tonnes at zero-duty to increase domestic availability.

The sugar export is estimated at 137,000 tonnes in the first six months of the 2008-09 season (October-September), sources said, adding these shipments are under the advance license scheme (ALS).

Under the ALS, traders and mills are allowed to import raw sugar at zero-duty when there is a shortage in the country with an obligation to export similar quantity of refined sugar within a prescribed period.

After a gap of one year, the Centre has re-introduced the release order mechanism for both under open general licence (OGL) and ALS. The release order mechanism makes it compulsory for exporters to seek permission from the food ministry before undertaking shipment.

The export release order mechanism under OGL was made effective from January 1, 2009, while under the ALS, it was from February 13 this year.

Sources said that the Centre has not allowed export even under ALS after February 13 and whatever quantity has been shipped this season is prior to that.

But the quantity of exported sugar is higher than what the PSUs have contracted to import.

A month after the Government on April 9 allowed three PSUs — MMTC, PEC and STC — to import 1 million tonnes of refined sugar at zero-duty, they had contracted for about 50,000 tonnes of sugar to be delivered by the end of June.