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Sugar Exports Freed 16 May 2012  
Sugar Exports Freed

Sugar Exports Freed


NEW DELHI, May 15 The government on Monday notified the decision allowing free export of sugar, a move that is expected to help industry ship surplus sweetener and clear cane payment arrears to farmers.

The arrears have mounted to over Rs 10,000 crore, according to reports.

The Food Ministry issued the notification more than a week after an inter-Ministerial meeting, chaired by the Prime Minister, Dr Manmohan Singh, decided to eliminate the ceiling on sugar exports by putting it under the Open General Licence (OGL).

According to the notification, effective from May 11, there would be no quantitative restrictions on sugar exports and producers are not required to obtain export release order from the Food Ministry under OGL in the 2011-12 marketing year (October-September) till further orders.

A trader who has imported raw sugar under the Advance Authorisation Scheme (AAS)-under which mills are obligated to export the sweetener after processing-on ‘grain-to-grain’ basis, is also not required to obtain export release order. In ‘grain-to-grain’, mills are allowed to process imported sugar and export. Such sugar is not available for the domestic market.

However, export release order is required for mills exporting sugar under AAS on tonne-to-tonne basis, the notification said. In ‘tonne-to-tonne’, mills are allowed to process imported raw sugar, undertake sale in local market and fulfil obligation of exporting an equal quantity later.

As per the notification, exporters have been asked to upload details about the quantity of sugar shipments (physical exports) to the Food Ministry within three working days.

Earlier, the government had permitted 2 million tonnes of shipments in equal tranches as sugar output is estimated at 26 million tonnes in the 2011-12 marketing year, higher than the annual domestic demand of about 21.5-22 million tonnes.

The Indian Sugar Mills Association (ISMA) said India could export another two million tonnes in the remaining five months of the current marketing year as the country would have a comfortable surplus of around 4 million tonnes for export from this year’s production.

Till April, physical shipments of 1.6 million tonnes of sugar were undertaken. During the 2010-11 marketing year, exports stood at 3.1 million tonnes.


  (Source: Exim India Dt. 16.05.2012)
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