New Delhi: Concerned over the recent rise in sugar prices, the government has decided to control export by re-introducing the release order mechanism from the next season beginning October.
“Besides, it will also withdraw the subsidy on export,” sources said.
“The exports assistance will not be given from October ownwards and release order mechanism for making exports will also come back from next season,” a senior Food Ministry official told PTI.
“The industry has been informed of this decision well in advance so that they can devise strategies to compete in the global market,” he added.
In order to liquidate the surplus sugar from the country, the Centre not only provided an export assistance to the sugar companies but in July last year it also did away with the provision that required exporters to seek release order from the ministry for export.
Sugar prices in the retail markets have increased to Rs20-22 per kg from Rs16-17 a kg 6-8 weeks ago.
India, the world’s second largest manufacturer of sugar after Brazil, produced 283 lakh tonnes of the sweetener in 2006-07 season and output is seen at 265 lakh tonnes in the current season, which runs from October to September.
The bumper production in these two seasons led to a glut in the country.
Since April 2007, the government is offering Rs1,350 a tonne as export assistance for the mills located in the coastal states, while Rs1,450 per tonne for those situated in non-coastal areas. It also created a buffer stock of 50 lakh tonnes, which has since been dismantled.