Sugar industry petitions Centre for early exports

The sugar industry has petitioned the central government to formally issue the trade notice allowing exports of 5,00,000 tonnes of the sweetener at the earliest.

The Centre had taken the decision to allow exports under the open general license on March 22 but is yet to formally announce the same. Industry insiders say it takes about three to four weeks from the day of the notification for exports to start and exports have already been delayed by almost three months.

So far, India has produced 20 million tonnes of sugar against the target of 24.5 to 25 million tonnes. The Maharashtra Commissioner of Sugar has already set up a special cell to facilitate exports.

Sugar industry sources told Business Standard: “The market sentiments are dull and they have not positively responded to the Centre’s decision allowing 5,00,000 tons of exports. The decision has come three months late.”

“On January 1, the then food minister Sharad Pawar had proposed exports of 5,00,000 tonnes and issued mill-wise quota. He had also assured that within three days the mills will be given clearance for exports. Based on his assurances the export deals were to take place but the whole scheme was put on hold till the EGoM approved it on March 22.”