Centre rules out export deadline extension

The government has ruled out extending the time limit for sugar exports under the Advance Licence Scheme, an official said today.

The food ministry has been receiving applications from sugar millers requesting extension of the period, he said.

"Most of the exporters want the government to extend the time-frame for sugar exports under the ALS, as international sugar prices are weak. But we are not planning to grant any such extension," the official said.

He also ruled out the possibility of extending the freight subsidy provided for sugar exports under the Open General Licence to exports under ALS. "We have no intention of providing assistance for exports under ALS as millers have already been provided an advantage when they were allowed to import duty-free raw sugar," the official explained, adding, that giving freight assistance would give them double advantage.

"This would be unfair to other millers," the official said. The mills have already earned enough profits by importing the commodity duty-free and selling, after refining it, he said. International sugar prices have fallen from their multi-year highs of almost $500 a tonne in June, when India had imposed a ban on sugar exports, to $300-320 a tonne currently, making exports uneconomical.

Under the ALS, mills that had imported duty-free raw sugar must export the same quantum within a stipulated time. Sugar mills need to export a little over one mln tn of the commodity against advance licences in lieu of around 2.6 million tonnes raw sugar imported between the 2002 and 2005 (October-September) sugar seasons. Since, the ban was revoked in January, the Centre has issued export permits for 446,000 tonnes of sugar under the ALS. Actual exports have however, been limited to only 236,000 tonnes till April-end, the official said. Meanwhile, export permits under the Open General Licenses, as of April 30, stood at 1.03 million tonnes while, actual shipments have been at 425,000 tonnes. The government has already granted an export subsidy of Rs 1,350 a tonne for mills in the coastal areas, and Rs 1,450 a tonne for non-coastal areas.