Sugarcane growers from Uttar Pradesh, the country's second largest cane producing State, today appealed to the Minister of State for Agriculture, Mr K.V. Thomas, to raise the limit for sugar exports this year so that mills can pay farmers' arrears to the tune of Rs 1,500 crore.
The government has allowed 1.5 million tonnes (mt) of sugar exports under Open General Licence (OGL) this year so far in three equal tranches in view of higher output than domestic demand.
“We met the Food Minister today to seek further exports of sugar as there is a surplus production,” said Mr Awadesh Mishra, former President of Chairman Associations of Cane Societies, Uttar Pradesh. He noted that there is still scope for further exports as the government has allowed exports of 2.6 mt so far against the surplus production of 3.2 mt in the current season.
Apart from OGL, the government had allowed sugar mills to meet their export obligation of about one million tonne under Advance Licence Scheme. Sugar production in India, is estimated at 24.2 mt in 2010-11 (October-September). The country had produced 18.8 mt of sugar in the previous year. The domestic demand has been pegged at 21 mt.