The sugar industry body ISMA on Tuesday asked the government to soon notify its decision to free exports for ensuring shipments of surplus sweetener on time.

In an inter-ministerial meeting Chaired by Prime Minister Dr Manmohan Singh on May 2, the government had decided to free sugar exports by putting it under Open General Licence (OGL).

Indian Sugar Mills Association (ISMA) noted that the country would have a comfortable surplus of around 4 million tonnes for exports from current year’s production.

“However, to ensure that the surplus is physically shipped out in time, the government should issue the orders for unrestricted exports, a decision which was taken at the level of the Prime Minister on May 2, 2012, orders for which are still awaited,” ISMA said in a statement.

The early notification of the decision would help millers in clearing cane payment arrears to farmers that have mounted to over Rs 10,000 crore.

Sugar output is estimated at 26 million tonnes in 2011-12 marketing year (October-September) against 24.3 million tonnes in the previous year.

The annual domestic demand is estimated at about 21.5-22 million tonnes considering the quota allowed by the food ministry for sale in open market and ration shops.

Before deciding to free sugar exports, the government had permitted 3 million tonnes of shipments in equal tranches but the notification were issued for only 2 million tonnes. The decision to put sugar export under OGL would be applicable on one million tonnes permitted on March 26.

ISMA Director General Mr Abinash Verma had said the country could export another two million tonnes in the remaining five months of the current marketing year ending September. Till April, physical shipments of 1.6 million tonnes of sugar were undertaken.

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