Dec 26, 2006
Sugar sector updates
The government will soon allow the sugar industry to import 1 million tonne (MT) of sugar under the open general licence, thereby lifting the ban on sugar exports, imposed in July. The government has asked the sugar companies to tap the sugar market in the EU, the third largest sugar producer, after India and Brazil, with 19 MT annually. The sugar production in the EU has been reduced following its decision to drastically reduce subsidy given to the sugar producers in Europe. This will provide an opportunity to the Indian sugar companies to benefit from the cut in the EU sugar production. The government has also suggested to the Indian sugar mills to export even at Rs 1,400 per quintal at ex-mill price. This would be beneficial to the sugar companies rather than bearing the interest burden of Rs 15 per quintal per month if the sugar remains at the mill.