Govt asks sugar mills to export 4 mn tonnes by Sept 2016

Food Ministry issued a circular and determined the annual export target for each sugar factory across the country.

The Dollar Business Bureau

In an effort to improve liquidity of sugar producers and clear the surplus stock of the sweetener, the government has fixed the export target of 4 million tonnes for the next sugar season beginning October. “Minimum Indicative Export Quotas (MIEQ) are being specified for 2015-16 sugar season commencing from October 1, 2015. Export quotas of 40 lakh tonnes of all grades of sugar ; namely raw, plantation white as well as refined, have been prorated amongst sugar factories, by taking into account their average production of three years including the current (estimated/provisional) and last two sugar seasons,” Food Ministry said in a circular issued on Friday. New factories starting production for the first time during 2015-16 sugar seasons will have the option to export up to 12% of their estimated production, the circular said, adding, “Factories should endeavour to undertake the MIEQs of sugar allocated to them, failing which they shall be deemed to be violating the directives of the government.” Of the total annual target of 4 million tonnes, factories in Maharashtra have been given the highest target of 1.3 million tonnes of shipment followed by those in Uttar Pradesh with 1million tonnes. Mills in Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh together will have to export around 1.12 million tonnes of sugar till September 2016. The government is making all out efforts to sell sugar overseas even as the international market is facing slowdown due to oversupply and fall in prices. Earlier, the government had said it will explore options of barter trade with several countries.  The government also provides subsidy to sugar exporters at the rate of Rs.4000 per tonne. During the current year (October 214-September 2015), India’s total sugar production is estimated to be around 28 million tonnes, at least 3 million tonnes higher than the domestic requirement. Between October last year and April this year, India exported 1.26 million tonnes of sugar. Sugar cane growers across the country are also waiting to get their payment of around Rs.4,000 owed by mill owners.  

September 19, 2015 | 3:28pm IST.

The Dollar Business Bureau - Sep 19, 2015 12:00 IST
 
TDB Top