Sugar exports imminent as global prices hit record high
03 Nov 2010
With sugar trading internationally at its highest level in three decades, India could begin exporting the sweetener next month.
According to a report, the government is likely to expedite the processing of applications from sugar mills for release of about 500,000 tonnes of sugar for exports.
It is likely that the release order for export of sugar under the open general licence will be phased out over a period to ensure that substantial quantity of sugar does not get exported at one go, The Economic Times reported.
"We now expect to have enough leeway to accommodate all stakeholder obligations even as we allow the industry to export to strengthen their finances," the paper quoted an unnamed official as saying.
Last week, agriculture and food supplies minister Sharad Pawar said in a newspaper interview that India will be a major beneficiary from the rise in global prices of sugar and cotton.
"India will benefit a lot, as there are ample opportunities for exports. The government of India will have to take a decision on exports of sugar after Diwali," he said. He also suddenly upped, for the first time, sugar production estimates for this year by 1.5 million tonnes to 25 million tonnes, at par with industry estimates.
