India likely to lift sugar export ban within 20 days

New Delhi, Jan 5 (UNI) India is likely to completely lift a ban on sugar exports within the next 20 days to ensure a reasonable price level in the domestic market, in view of the sugar production expected to touch a record 23-24 million tonnes in the current sugar season ending September 2007.

With the bumper production figures, the total availability of sugar will be around 270 million tonnes including carry over stocks of four million tonnes, the Government was looking at ways to maintain the surplus quantity, Agriculture Minister Sharad Pawar said today.

He said the present scenario may facilitate to make the country the largest producer of sugar in the world.

Last year, the sugar production was 19.3 million tonnes with India's annual consumption about 18.5-19 million tonnes.

Inaugurating the Convention on Bio-energy Tech-2007 here, Mr Pawar said the government is considering alternatives to manage the sugar stock so that farmers are not discouraged, as prices of the sweetener fall in a situation when production surpasses demand.

''We have to see Indian sugar exports are competitive in the international market and the government is studying the option of giving export subsidies as well as planning a buffer stock for the commodity,'' he said on the sidelines of the Convention.

Mr Pawar further said the Cabinet is likely to take up the matter of free sugar exports soon and procedure for completely lifting the sugar export ban will not take more than 20 days.

A complete ban on sugar exports was imposed in July as retail prices in the domestic market had risen to a high and the restriction on exports was announced till March 31, 2007.

On December 18, the Cabinet had decided to allow mills which had imported raw sugar with an obligation to re-export it within a specified time period to begin sales.

Yesterday, the government had issued a notification formally allowing limited exports of sugar to meet the obligation of re-export of refined product under Advance Licence System (ALS).

On ethanol production in India, Pawar said ''it is time India follows the Brazilian model where ethanol production is stepped up whenever petroleum prices are high''.

The Minister stressed the need to give a serious consideration to produce alternative bio-fuels as India is importing 72 per cent of the requirements of petroleum from Gulf region.

He emphasised the need to give more incentives to domestic producers of bio-diesel and also urged for a domestically and internationally competitive duty structure for import of raw material for the production of bio-fuels.

The government is also considering a proposal of the Biodiesel Association to reduce countervailing duty (CVD) for feed stocks utilised to produce biodiesel, from the existing 16 per cent to a minimal level, the Minister said.

Mr Pawar listing the measures taken for the promotion of bio-fuels said that nine various ministries and departments have been given the responsibility for the development of alternative source of energy.

The Agriculture Minister also informed that the Ministry of New and Renewable Energy is formulating a national policy on bio-fuelds and the Ministry of Petroleum and Natural Gas has already launched a ethanol-blending programme.

A purchase policy for bio-diesel has also been announced and the Ministry of Agriculture has undertaken research and development, promotion and extension for popularisation of tree borne oilseeds like Jatropha and Karanj.

Mr Sandeep Chaturvedi, President of Bio-Diesel Association of India, also the organisers of the Convention, called for more measures to encourage bio-fuel production like jatropha plantation in rural areas.

He said increased production will not only reduce pollution, it will also put India on path of energy security.

Employment opportunities in rural areas will increase, as there is potential for one person per hectare, Mr Chaturvedi added.

UNI