Govt to review ban on export of sugar in October: Pawar

New Delhi, July 31 (UNI) The government will review the ban on export of sugar in coming October, the beginning of new sugar year (October 06-September 07) as the country is set to have a bumper sugarcane crop this year, Agriculture and Food Minister Sharad Pawar told the Lok Sabha today.

During the coming 'sugar year,' the sugar production is expected to be around 227 lakh tonne (LT) with consumption estimated at 180 LT thereby, leading to sizeable surplus stocks, Mr Pawar said during Question Hour.

The decision to ban the sugar export and go in imports, if need be, was taken to check the rise in sugar prices, which touched Rs 22 kg a few weeks ago, while prices have stabilised at Rs 20-21 a kg in domestic market.

The government prohibited export of sugar till March 31, 2007 except for the preferrential quota to European Union and US.

He, however, made it clear that the government did not want to minimise India's share in global market, particularly when it lead to good profits to the sugar industry with international prices ruling high.

Mr Pawar also admitted that the ban of export not only hit the sugar industry but also the sugarcane growers in the long run, indicating that the government was all set to withdraw ban on export of sugar.

On the other hand, the sugar industry has also been pressuring the government to remove the ban and allow it export sugar. Earlier, the government even allowed the sugar mills to sell white sugar, processed from imported raw sugar, at zero duty in domestic market, waiving the conditions to export the same within 24 months, just to control the sugar price spiral in the country.

India's sugar production dipped to 139.58 LT and 130 LT in 2003-04 and 2004-05, respectively following declining sugarcane production in the country, neccessiating import of 9.33 LT in 204-05 and 5.59 LT in 2005-06.

However, the total consumption of sugar during that period also came down to 175 LT in 2003-04 and to 171.44 LT during 2004-05.

Mr Pawar also informed the House that the government would soon take a policy decision on promoting the generation of ethanol, a sugarcane byproduct, as was done by Brazil, in view of increase in prices of the petroleum product in the international market.

The negotiations between the Petroleum Ministry and the sugar industry on pricing mechanism of ethanol, a bio-fuel being mixed in fuel the world over to run vehicles, are in the final stage.

Brazil and US have been promoting ethanol production either from sugarcane and maize to minimise the impact of oil price hike.

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