Rana Sugars seeks export of 1 MT of sugar

"We want the Centre to permit 1 MT of sugar export to cash in on high rates of sugar in global markets," Rana Sugars Limited MD Rana Inderpartap Singh told PTI here. " The decision should be taken soon by the Centre to avoid a situation similar to what was in the case of wheat crop where despite lifting ban on its export, the shipments remains unfeasible due to low international prices," he said.

Further, he stated that the sweetener rates shot up from USD 750 per tonne four months back to USD 875 per tonne, which are enough to give handsome returns to sugar exporters.

"At current global rates, sugar exports fetch Rs 38 per kg while in domestic market, rates are hovering around Rs 28 per kg. So, the sugar companies can get additional Rs 10 per kg," he said.

The government has so far allowed export of one MT of sugar in phases under Open General License (OGL).

Sugar maker stressed that even after allowing 1 MT of sugar export, the country would have enough stock in hand to cause any "abrupt" hike in domestic sugar rates.

Sugar industry has pegged the sweetener output at 24.2 MT for the season 2010-11, (October-September) as against 19 MT in previous season. The stock for the last season stands at 5 MT, while the country's sugar consumption is expected at 22.5 MT.

"We will have sufficient supply of sugar considering the domestic output (24.2 MT), stock and consumption pattern," Singh added.

He further pointed out that sugar output for 2011-12, season was expected at 26.5 MT with acreage going up by 5-7% in the country.

Rana Sugars, one of the largest sugar producers in the country has crushing capacity of 15,000 tonnes per day with two units in UP and Punjab. The company saw a big jump in sales to Rs 870 crore in 2010-11, compared to Rs 550 crore in the previous fiscal.