India imposes blanket ban on sugar export

New Delhi, July 9 (UNI) Consequent to June 22 decision of Cabinet Committee on Prices (CCP), the Commerce Ministry has imposed a blanket ban on export of sugar till March next year thereby putting to uncertainty the export of remaining stock of 4.5 lakh tonnes of the total 12 lakh tonnes of sugar for which the Food Ministry had already issued the release orders.

The latest ban notification issued by the Directorate General of Foreign Trade (DGFT) is mum on whether the sugar companies which had imported duty-free raw sugar under the advance licence scheme will be allowed to re-export one tonne of white sugar against every 1.05 tonne of raw sugar as part of their export obligations.

The Food Ministry, however, is planning to petition the Cabinet Secretariat seeking that those sugar companies be allowed to export white sugar as part of their statutory committment which had imported raw sugar for processing.

Such sugar companies like Dhampur, EID Parry, Renuka and Simbhaoli are also keen to export white sugar and cite it as part of their legal obligation because they are set to earn atleast Rs 2000 per tonne more in the international market than what could fetch in the domestic market.

The international prices of white sugar now ranges as high as 450-500 US dollars a tonne with Bangladesh and Pakistan experiencing a shortfall of around 20 lakh in their production and EU countries having 5-6 lakh tonnes of surplus stocks, have withdrawn the export subsidy.

Domestic sugar prices already fell by Rs 100 per quintal last month with retails prices now ranging around 24 per kg.

With the country's total consumption of about 180-185 lakh tonnes a year, India is poised to produce 192 lakh tonnes of sugar this year. And, the carry-over could be about 50 lakh tonnes at the beginning of 'new sugar year' in coming October. During next sugar year (2006-07) the country is expected to cross its production over 200 lakh tonnes.

UNI JSS PV RN1244