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Government notifies additional exports of sugar

25 Feb 2012 Evaluate

The government has notified exports of additional one million tonnes of sugar on Friday. The notification has come after a panel of ministers headed by Finance Minister, Pranab Mukherjee on February 7, had conceded the demand made by sugar manufacturers to allow greater exports of sugar in view of the expected increase in its production.

As per the notification, the export quota will be allocated among sugar mills based on their average production of last three years. Mills can export sugar from their own production or they can source the sweetener from other factories to minimise transportation cost. However, a brand new sugar factory which has started this year will not have any export entitlement. The refineries which are producing refined sugar from raw sugar will also not have any export entitlement.

The Ministry has given 45 days to sugar mills to apply for export release orders, which will be valid for 60 days with a warning that no further extension of time period will be permitted for submission of application beyond the stipulated period. If not utilized, quota of the concerned mills will stand lapsed.

Sugar production in India, the world’s second biggest producer and the largest consumer, is estimated to outstrip annual demand of 22 million tonnes this year. The government has pegged sugar output at 24.5 million tonnes for 2011-12 marketing year, while the industry body ISMA (Indian Mills Sugar Assosiation) expects it to be 26 million tonnes. In 2010-11 marketing year (October-September), the country had exported 2.6 million tonnes of sugar.

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