Government advises sugar mills to accelerate sugar export

Aims to improve mills liquidity position and facilitate clearance of farmers arrears

In view of huge carryover stock and estimation of excess production of sugar in the current sugar season 2018-19 (October-September) and in order to improve the liquidity of the sugar mills to facilitate them for clearance of cane price arrears of farmers, the Central Government has fixed export targets by allocating mill-wise Minimum Indicative Export Quotas (MIEQ) of 50 LMT of sugar for export in current sugar season 2018-19.

However, it has been observed that the sugar mills are not undertaking export of sugar at a desired pace. Only about 2.46 LMT of sugar has been exported and contracts of only about 6 LMT (including 2.46 LMT of actual export) in the 1st quarter of the season. The Central Government has taken a very serious view regarding non compliance of the directives of the Government by most of the sugar mills. All the sugar mills have been once again advised to undertake export of sugar as per their allocated quantity of MIEQ failing which appropriate action would be initiated against the defaulting sugar mills.

Further, as indicated earlier in the monthly stock holding limit order issued to the sugar mills, they are required to set their quarterly export targets and intimate the same to Department of Food & Public Distribution (DFPD). Fulfilment of the quarterly export target by the sugar mills is monitored by DFPD. In case, a sugar mill fails to achieve its quarterly sugar export target, the equivalent quantity of un-exported sugar during the said quarter shall be deducted in three equal instalments from the quantity of sugar to be allocated to them in Column 4 of the table of monthly stock holding limit order for each month in the subsequent quarter.

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