The Empowered Group of Ministers (EGoM) will soon decide on the modalities to ship one million tonnes of additional sugar approved for exports last month.
“We are seeking the EGoM guidance on the modalities so that there are no complaints later,” the Union Minister of State Food Minister and Consumer Affairs, Prof K.V.Thomas, told reporters.
The EGoM is likely to meet on April 25, to review the shipment modalities, after which a notification for export of one more million tonne will be issued.
Typically, the Government allocates export quota or permits to factories based on their production in the preceding three years. However, a section of sugar millers from South and West have demanded that the export quota should be allowed on a first-come-first-served basis. Such a demand has prompted the Government to refer the issue to the EGoM.
Most of sugar exports are done by millers in South or West because of their proximity to the ports. Millers in North India typically sell their export permits at a premium to exporters in the West or South to save transportation costs that make their shipments expensive.
The Government has allowed three million tonnes of sugar exports in the current season under the open general license. Of this, the notification for one million tonnes is yet to be issued, Prof Thomas said.
Rising arrivals
Meanwhile, wheat arrivals have picked up in Madhya Pradesh and Haryana, as also the procurement by the State agencies. So far, arrivals have increased by 16 per cent to 4 million tonnes against 3.45 million tonne in the corresponding last year.
Procurement by States agencies has increased by 19 per cent to 3.39 million tonnes against 2.85 million tonnes a year ago. Madhya Pradesh, which leads other States in wheat procurement, has bought 2.4 million tonnes against 1.4 million tonnes last year.