India would not export sugat till Diwali festal

The government will not allow more sugar exports till Diwali as the demand for the sweetener shoots up during the festive season, Food Minister K V Thomas said today.
Industry representatives had met Thomas earlier this week to press for additional exports of 1.5 million tonnes of sugar.

"We will take a view on export after meeting the festival demand and looking at domestic price situation," Thomas told PTI in an interview.

The minister said that the government would also take into account the production outlook for 2011-12 season, which begins in October this year, before deciding on more exports.

Big festivals like Diwali are celebrated in October-November period.

In April, the government had allowed export of 5,00,000 tonnes of sugar under Open General Licence (OGL) out of which 51,500 tonnes has been earmarked for neighbouring countries.

Thomas, however, said that the government would consider the industry''s demand to lift the stockholding limit on sugar to boost domestic sales.

"We will also observe the impact of relaxing the stockholding norms on retail prices of sugar while considering more exports," he added.

Thomas pointed out that the retail prices of sugar are still fluctuating and in some places, rates are as high as Rs 40 per kg.

According to official data, retail price of sugar in Delhi is ruling at Rs 30-32 per kg.

"The decision on exports will depend on price situation in retail market and estimates of next year''s production," Thomas said.

Sugar production of India, the world''s second largest producer after Brazil, is estimated to rise to 24.2 million tonnes in the 2010-11 season, compared with 18.8 million tonnes last season.

As per the initial estimate, the industry has pegged the next year''s sugar output at 26-26.5 million tonnes in anticipation of higher sugarcane acreage and yields.
India, the world''s biggest consumer of sugar, requires 22.5 million tonnes of sweetener annually.