Food min issues export order for 4.33 lakh tonne of sugar
The food ministry has so far cleared export of 4.33 lakh tonne of sugar out of five lakh tonne quantity the government had allowed in June.
August 10, 2011 / 15:07 IST
The food ministry has so far cleared export of 4.33 lakh tonne of sugar out of five lakh tonne quantity the government had allowed in June.
The government had notified export of 5 lakh tonne of sugar under Open General Licence (unrestricted shipments), on June 28.In April too, the Centre had allowed export of 5 lakh tonne, of which 51,500 tonne were set aside for the neighbouring countries.As sugar industry is under government control, the mills are required to obtain release order (RO) from the ministry before undertaking exports.According to the latest official data, the ministry has issued export release order to mills for 4,33,045 tonne of sugar till August 8.The ministry had allocated the entire export quota to mills based on their last three-year's average production. Mills were allowed to export sugar either produced from its own units or sourced from third party.The government has allowed export of one million tonne under OGL in two tranches as the country's sugar production in 2010-11 has exceeded demand. Besides, prices of the sweetener in retail markets are also stable at Rs 32-33 per kg.Sugar output of India, the world's second largest producer and the biggest consumer, is pegged at 24.2 million tonne in 2010-11 season (October-September) against around 19 million tonne in the previous year. The annual domestic demand is 21-21.5 million tonne.Indian Sugar Mills Association (ISMA) is demanding export of further one million tonne due to surplus stock and also to take advantage of higher global prices of the sweetener. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
