Sugar mills should export mandatory quota: Fadnavis

Notwithstanding the sugar millers' demand to relax the mandatory export target in view of the decreased cane crop yield, Maharashtra government today said stern action would be taken against those failing to export the mandatory quota.
"Sugar mills will have to export their quota for the industry to survive. They won't be able to sustain with current prices if they avoid exporting sugar. The dead stock might also adversely affect the sugar prices," Chief Minister Devendra Fadnavis said.
He was addressing a meeting of the cooperative sugar mill owners at the Y B Chavan Centre here, which was also attended by the former Union Agriculture Minister Sharad Pawar, state cooperatives minister Chandrakant Patil, rural development minister Pankaja Munde, leader of opposition in Assembly Radhakrishna Vikhe-Patil and others.

The decision of mandatory export would lead to a nominal increase of around Rs 2 to 3 in sugar prices, Chandrakant Patil said.
"This nominal increase too would help the farmers in a big way....Upward spiral of sugar prices is expected to begin with this decision as this year sugar production fell by around 25 percent and next year it is likely to be half compared to previous year," the minister said.
The Centre last week made it mandatory for mills, both private and co-operative, to export four million tonnes of sugar each in the 2015-16 season (October-September) to sell surplus stocks in global market and improve cash flow of the millers for making payments to the farmers.

India has surplus sugar stock on account of bumper production in last five years, which depressed local prices.