Cooperative sugar mills have sought the Centre's nod for export of an additional five lakh tonnes (lt) under open general license during the current 2010-11 season (October-September). This is over and above the already permitted quantity of 10 lt.

“We have asked the Food Ministry to allow export of this additional quantity, as the domestic stocks position is comfortable and global prices are also good,” Mr Vinay Kumar, Managing Director of the National Federation of Cooperative Sugar Factories Ltd.

The ongoing sugar season till June has recorded a domestic output of 239.59 lakh tonnes (lt). “I see it ending up at between 242 to 244 lt. The coming 2011-12 season is likely to witness a still higher production of 260 to 265 lt. There is no reason for the Government not allowing more exports, more so when the all-India average ex-factory price of sugar during this season, at Rs 2,655.71 a quintal, has been below the Rs 2,852.53 for 2009-10,” Mr Kumar told presspersons here on Monday.

He reckoned the country would have an exportable surplus of over 20 lt during the 2011-12 season.

Besides permitting more imports, the cooperative body has also sought freeing sugar mills from the obligation to supply 10 per cent of their production as levy at below market prices and phasing out the monthly release mechanism. The latter requires mills to sell a certain quantity of sugar every month, with the Government fixing this so-called free sale quota for every factory.

“This works totally to the advantage of traders who know we have no option but to sell our quota within the month. We have suggested that we move first from a monthly to a quarterly release system, before we abolish it altogether,” Mr Kumar said.

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