ISEC to export 1 lakh tonnes of Sugar by mid-October

Sugar exporter ISEC is looking to export 1 lakh tonnes of the sweetener in October, a move aimed at clearing cane arrears of farmers.
Indian Sugar Exim Corporation (ISEC) is run by private industry body Indian Sugar Mills Association (ISMA) and cooperative sugar mills body National Federation of Cooperative Sugar Factories (NFCSF).
Last month, the government had given mills a target of exporting four-million tonnes of the sweetener for the marketing year (October-September) 2015-16 in a bid to clear cane arrears of about Rs 14,000 crore to farmers.
"Government and industry are working together to resolve the current crisis in the sugar industry. All the steps, including disbursal of soft loans to mills, increasing the ethanol blending to 10 per cent are in the right direction," ISMA President A Vellayan said.

The government's decision to announce export target before the start of season was much desired move, he added.
"So we are expecting that in the next 15 to 20 days, ISEC would export 1 lakh tonnes of sugar," Vellayan added.

Welcoming the steps taken by government, ISMA and NFCSF assured that that they would take all necessary steps to ensure that maximum sugar exports take place in the next season.
ISMA and NFCSF are working shoulder to shoulder with the government to solve the current crisis of the sugar industry and is not supporting any negative campaigns against the government, the statement added.

Sugar output in India, the world's second largest producer has exceeded demand for the fifth consecutive year, resulting in lower prices in the domestic markets and creating liquidity crunch for millers, who are unable to clear cane arrears.
Due to surplus sugar production in last few years, ex-mill sugar prices have fallen below Rs 20 a kg in the country, while the cost of production is over Rs 30 per kg.
Country's sugar production in marketing year 2015-16, is estimated at 27 million tonnes against the annual demand of 24.5 million tonnes.