Delayed notification to cost sugar exporters dearly

New Delhi, Jan 3 (UNI) Indian sugar producers have been eagerly waiting for a notification allowing them to export the commodity to meet their re-export obligations for the imported sugar.

The Cabinet, at its meeting held on December 18, 2006, had permitted sugar exports allowing the industry meet its obligation of re-export of the refined sugar. But, the industry has since been waiting for a notification giving it a formal go ahead.

The sugar exporters are apprehending huge losses as global buyers offering very low prices at this point of time when ''they know that India will be having a surplus by producing around 22.7 million tonnes of sugar in the current sugar season up from 19.3 million tonnes in the last season.'' India's annual domestic consumption ranges between 185 to 190 lakh tonnes.

Industry sources said that domestic prices are higher at around Rs 15,000 per tonne which calculates to around 338.4 dollars which is higher than the prices prevailing in the international markets hovering at 330 dollar a tonne now.

Exports under the scheme have to be made within six months to a year.

In the wake of higher sugar production worldwide, the prices could fall further, sources say.

India, the world's second-largest sugar producer after Brazil and biggest consumer, had banned all sugar exports in July as retail prices rose in the domestic market.

The industry had been pressing for lifting of the ban to take advantage of soaring global prices, but by December the markets had cooled down.

Traders were anticipating further fall in global prices.

UNI