Sugar industry demands for early issue of export order

Sugar industry today demanded that the Food Ministry should issue the release order at the earliest, for export of 4.5 lakh tonnes of imported raw sugar lying at ports, enabling mills to take advantage of the high global prices.

Early this month, the Food Ministry allowed export of imported raw sugar stuck at ports with a rider that it will issue release order, provided mills submit documents to prove that the raw sweetener was actually lying in port premises.

The release order is mandatory for traders to undertake export of sugar. The ministry has not been issuing the release order, though mills have given all documents, the sugar industry bodies ISMA and NFCSF said.

Indian Sugar Mills Association (ISMA) Deputy Director General M N Rao said, "We have requested the government to fasten the process because the export opportunity is very much time-bounded. If we miss it, we miss it."

Now, the time is ripe for Indian sugar traders to enter into the global markets, where sugar prices are ruling higher than the domestic market, he said.

Expressing similar views, National Federation of Co-operative Sugar Factories (NFCSF) Managing Director Vinay Kumar said, "We want to export now to benefit from high prices. Raw sugar price has increased to 23.34 cents per pound in New York from 15-16 cents per pound two months back."

Also, traders, who have imported raw sugar at higher rates can minimise losses by exporting it now, he said. According to sources, the export release order has not been issued as the Food Ministry is working to expand the definition of 'port area' to include 'port town'.

The government allowed import of raw sugar at zero duty to augment domestic supplies and curb prices. At present, retail sugar prices have come down to Rs 30 a kg from the high of nearly Rs 50 a kg in mid-January.

SOURCE: BS