Centre likely to lift ban on sugar exports by Jan-end

The government is considering the complete removal of ban on sugar exports and a decision is likely to be taken by the end of January.

"The availability of sugar in the 2006-07 season (October-September) is likely to be around 270 lakh tonne (40 lakh tonne carried over from the last season and 230 lakh tonne of production expected this year) and the inability to export and the consequent surplus could affect sugarcane acreage after two years," said Union Agriculture Minister Sharad Pawar on the sidelines of the Bioenergy-Tech 2007 convention organised by the Biodiesel Association of India.

In the 2005-06 season, the country had produced 191 lakh tonne of sugar. As the falling global sugar prices have rendered exports unattractive, the government could give export subsidy in the form of transport assistance, Pawar indicated.

On December 19, the government had lifted the sugar export ban partially, allowing export by companies with obligation under the Advance Licence scheme.

"In view of the expected higher production this year, the government would consider building and maintaining buffer stock for sugar," Pawar said.

The minister also expressed concern over the delay in payments for sugarcane by mills to farmers.

Earlier in his address at the convention, the minister pointed out how countries, such as Brazil, divert sugarcane juice to ethanol production when the crude oil prices are high and vice versa.

"We would also encourage the domestic sugar producers to make ethanol directly from sugarcane juice rather than from molasses," he said.