The Government on Tuesday allowed export of one million tonnes of sugar for the marketing year 2011-12. It also decided to scrap the stockholding limit for sugar traders from December 1.
“We had to balance the interest of farmers, consumers and the industry. There was a demand for 3 million tonnes (mt) but we allowed 1 mt keeping in view the interest of all stakeholders,” the Food Minister, Mr K.V. Thomas, said.
He was speaking to reporters after the Empowered Group of Ministers decided to allow sugar exports under the open general license.
“Exports will help improve cash flows and help us make cane payment on time within the crushing season. It will also help the mills avoid any distress sale,” said Mr Abinash Verma, Director-General, Indian Sugar Mills Association (ISMA).
He also welcomed the Government's move to do away with stocking limits as the country stares at a bumper crop.
According to ISMA projections, the opening stocks for the 2011-12, starting October stood at 5.8 mt. Production is estimated to grow 7.4 per cent to 26 mt, while consumption is seen rising at 6 per cent to 22 mt.