Ministry Allows Export Of 10 Lakh Tonne Sugar

As a further step to liberalise exports, the ministry has directed that the sugar exporters would only require registration and allocation with the Agriculture and Processed Food Products Export Development Authority to undertake exports, an official statement here said.

In a bid to dispose of the country's excess stocks of sugar, government had allowed sugar exports from the country in June. It had also announced levy exemption on the exported quantity hoping to make Indian sugar competitive in the global market.

India is likely to produce 18 million tonne of sugar in 1999-2000 (Oct-Sep) compared to an initial estimate of 16 million tonne and 14.9 million tonne produced last year.

 

There is also projection of 18 per cent growth in production for the current season besides an expected carry over stock of 10 million tonne by September which would further add on to the stock.

With the issue of trade notice by the ministry of commerce, sugar manufacturers have received the green signal for export of 2.5 lakh tonne which had been procured by the Indian Sugar and General Industry Export Import Corporation (ISGIEIC) through tenders.

ISGIEIC, the agency set up by sugar manufacturers to look after export, has invited tenders to procure 2,50,000 tonne from millers, the last date of which ended on July 19.

Though government had given permission to export 10 lakh tonne, ISGIEIC had invited bids for only 2.5 lakh tonne as the agency wanted to export the commodity in three to four shipments.

ISGIEIC sources said they wanted to wait till the time international sugar prices reached their desired price of 285 dollars a tonne, but huge stocks had forced them to export at lower prices.

Last week, the agency had opened tenders that were invited from international bidders. According to sources, the agency had already awarded a shipment of 258-260 dollars per tonne and another shipment at a further discount.