Govt to allow sugar exports for 2012-13 season

Food minster K.V. Thomas says he don’t see any problem of availability for the domestic market
Comment E-mail Print Share
First Published: Mon, Oct 15 2012. 04 45 PM IST
Sugar output would not fall below 23.0 to 23.5 million tonnes in the 2012-13 season, said food minster K.V. Thomas. Photo: Mint
Sugar output would not fall below 23.0 to 23.5 million tonnes in the 2012-13 season, said food minster K.V. Thomas. Photo: Mint
New Delhi: India, which is likely to produce a sugar surplus for its third year in a row, has decided to allow exports for another year, food minster K.V. Thomas said, reflecting confidence about domestic supplies in the world’s top consumer of the sweetener.
Mills and traders will have to wait for a formal order to export sugar in the new season that began on 1 October, however. India, also the world’s top producer after Brazil, has been exporting for the past two years.
But the country has not been able to sign fresh export deals in the recent past due to rising domestic prices and lower global rates.
The decision to continue with unrestricted exports indicates ample availability, especially during the current festival season when demand peaks, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
Output would not fall below 23.0 million to 23.5 million tonnes in the 2012-13 season, Thomas said.
“In terms of availability for the domestic market, I do not see any problem, as we have carryover stocks of 6 million tonnes from the previous season and production will not be less than 23.0 million to 23.5 million tonnes against our consumption of about 22 million tonnes,” Thomas said.
The previous year’s output was 26 million tonnes.
Lifting Curbs
Cycles in India’s sugar output have caused alternate gluts and shortages that force the world’s top consumer to export and import almost every three years.
To end the cycle, C. Rangarajan, chairman of Prime Minister’s economic advisory council (PMEAC), has urged freeing up the tightly regulated sugar sector, but the step needs Cabinet approval.
The government will act soon on the matter, Thomas said.
“The recommendations of the Rangarajan committee will not meet the fate of the reports of earlier committees. We will soon take a decision on these recommendations,” he said. Reuters
Comment E-mail Print Share
First Published: Mon, Oct 15 2012. 04 45 PM IST
More Topics: Sugar | Exports | KV Thomas | India |
blog comments powered by Disqus
  • Wed, Oct 22 2014. 09 49 PM
  • Wed, Oct 15 2014. 11 40 PM
Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved