Govt likely to revoke sugar export order
The Dollar Business Bureau
The Government of India is likely to revoke its order on compulsory export of 3.2 million tonnes sugar this sugar season. It is also planning to reduce the import duty to keep the sugar prices under control. The government had asked sugar mills to export 3.2 million tonnes of export surplus stock, this marketing year in the Indian market. Till now only 1.4 million tonnes of sugar has been exported and by the end of the season it may reach 1.5 million tonnes as the exports have almost stopped.
According to a source, the merchants are not exporting sugar due to the low prices in global market. In spite of the policy decision, the government needs to encourage mills to export sugar. India has enough sugar stocks available for this year and the coming year as well. There is no need to import sugar in these years. The government is ready to tweak import duty if there would be any manipulation and artificial rise in sugar prices. Currently, there is 40% import duty on sugar.
Within a few weeks, the government will take back the order on compulsory export, as we no longer need to export. It was aimed at bringing the stock levels down to support prices that had nosedived. The decision to stop paying farmers under the scheme was made easier by the fact that the cane crushing season was coming to an end, and higher local sugar prices meant mills would have more money available to pay them, the source said.