September 16, 2015
Sugaronline | http://goo.gl/fMWvmm
Sugar exporters, who are struggling with surplus production and low prices, are urgently seeking clarity on the government's export policy as the international market sentiment has improved ahead of the new season, according to the Economic Times of India.
The central government had announced a subsidy of INR4,000 (US$60)/tonne last year for export of raw sugar. India exported about 500,000 tonnes of raw sugar and about 500,000 tonnes to 600,000 tonnes of low quality white sugar. The export subsidy scheme will lapse on September 30.
In order to sign contracts for export of sugar during the next sugar season beginning October 2015, the industry needs clarity about export policy. The union government had hinted at making exports mandatory for the sugar mills in order to get rid of the excess sweetener in the country. The domestic market also improved government talk about mandatory exports. However, no decision has yet been taken on this either.
"The international market is good now for export of sugar from India. However, we need clarity on export policy. The sugar mills can get a price of about INR17/kg for raw sugar export," said Rahil Shaikh, managing director, ED and F Man (India). If the government continues the subsidy of INR4/kg, the mills can get about INR21/kg to INR23/kg for raw sugar, while the ruling rate of white sugar in the domestic market is about INR23/kg to INR24/kg.
Last year, the central government announced export subsidy in February 2014, after which, it was not possible for many mills to produce raw sugar as the season was at its fag end.