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EGoM to meet on additional exports of sugar

12 Aug 2011 Evaluate

To consider the demand for the additional export of sugar and removing ban from wheat exports, An Empowered Group of Ministers (EGoM) on food, headed by Finance Minister Pranab Mukherjee is expected to meet today. So far the government had allowed one million tonnes of sugar exports under the open general license (OGL) in the current financial year.

The industry is demanding additional one million exports of sugar due to huge surplus stock of sugar and higher international prices. Nearly all political parties from Maharashtra are demanding extra exports of sugar so that sugar mills can make payments to sugarcane farmers.

According to Food Minister K V Thomas, till May 15, sugar mills have to pay around Rs 2,951 crore to the sugarcane farmers for the current 2010-11 season i.e. October to September. And around Rs 211 crore are pending for the last season. Due to decline in ex-mill prices, sugar mills have not been able to make payment on time.

The food ministry wants to delay the decision on the additional exports by the September, so the actual stock of the sugar and idea about the production in next season will come to know. However, the agriculture ministry is pushing for the additional exports.
    
India is the world largest consumer and second largest producer of sugar. In the current season sugar production is expected to be around 24.2 million tonnes from 18.8 million tonnes in last season, against the production, annual demand for the sugar is pegged at 21 to 21.5 million tones.

For wheat exports, the EGoM is expected to discuss the issue. However, exports of wheat are less likely to happen as the international prices are less than the domestic prices. During the last meeting of EGoM, the decision was delayed on allowing exports of wheat. Government had put ban on wheat exports in 2007. 

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