Sugar sector moots long-term export policy

The sugar industry has demanded a long-term policy to enable it to export regularly irrespective of variations in output. It mentioned that the irregular nature of sugar shipments from India is resulting in a low price realisation.

Global importers overlook India as a reliable long-term supplier on account of the government’s policy. This has impacted price realisation for domestic sugar exporters, according to Indian Sugar Mills Association (Isma) director-general SL Jain.

Jain added that Indian sugar sells at a discount of almost $100 per tonne against the international price. Though it is admittedly a bit inferior quality than the refined sugar abroad, the huge price variation is not justified.

The Centre in 2006 had banned export of sugar that was lifted in January 2007 after a gap of six months, though India produced a record output of 28.3 mn tonnes in the 2006-07 season (October-September).

The ban in the first crucial three months had badly affected exports in 2006-07 season and the overall shipment in the entire season was 1.8 mn tonnes.