Nov 20, 2006

Govt considering lifting ban on sugar exports: FM

Domestic production is likely to touch a new record in the year 2006-07. The Govt had halted sugar exports in July to shore up local supplies and check inflation
The Government is considering lifting the ban on sugar exports as domestic production is likely to touch a new record, Finance Minister P. Chidambaram said on Monday. It may be recalled that the Government halted sugar exports in July to shore up local supplies and check inflation.
Sugar production is likely to touch 22.7mn tons in the year ending Sept. 30, 2007, according to the Agriculture Ministry.

Resumption of sugar exports from India may lead to a fall in world sugar prices. White sugar prices in London are down 29% from a May 12 peak of US $497 per ton on increased supply from Brazil, the world's largest producer.

The International Sugar Organization (ISO) this month raised its forecast for next year's global sugar surplus to 5.8mn tons, from 2.2mn tons.
Shares of Bajaj Hindusthan Ltd., Balrampur Chini Mills Ltd. and Shree Renuka Sugars Ltd. jumped after the announcement from the Finance Minister.
Shares of these companies have plunged since May 1, because of a slump in world sugar prices. The stocks have also been hammered on concern that the ban on sugar exports may put pressure on domestic prices when the new stocks hit the market

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