The food ministry has so far allowed 4.33 lakh tonnes of sugar exports out of 5 lakh tonnes. In June, the government had allowed additional export of 5 lakh tonnes under the open general license (OGL). As per the latest official data, the ministry has issued export release order to mills for 4,33,045 tonnes of sugar till August 8.
In month of April, the government had permitted exports of 5 lakh tonnes of sugar, out of which 51,500 tonnes were kept aside for the neighbouring countries. Presently, sugar industry is under government control, and sugar mills are required to ask for release order (RO) from the ministry before taking any export orders. The food ministry had allocated the total export quota to sugar mills on the basis of their last three year’s average production. The mills are allowed to export sugar either from their own mill or from the third party.
The government has permitted the exports 1 million tonnes of sugar in OGL in current financial year due to record production in 2010-11 and fall in domestic retail prices which is around Rs 32-33 per kg. The Indian Sugar Mill Association (ISMA) has been demanding export of additional 1 million tonnes of sugar on the back of higher global prices and record production.
India is the second largest producer and largest consumer of sugar, its production for the current season is pegged at 24.2 million tonnes from 19 million tonnes in the last season. The annual demand for the sugar is around 21 to 21.5 million tonnes.
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