India to export raw sugar, process ethanol from cane

New Delhi, June 7 (UNI) Saddled with surplus production, India will allow export of raw sugar for the first time and also processing of ethanol from the sugarcane instead of the present practice of extracting it from molasses.

The government will also give subsidy on the export of raw sugar.

But the quantum of subsidy is expected to be decided within two weeks as a note is being prepared by the Food Ministry for Cabinet clearance, Agriculture and Food Minister Sharad Pawar told the mediapersons here today.

India is expecting to export 500,000 tonnes of raw sugar in the next season beginning in October this year to Dubai, Egypt, Abu Dhabi and Bangladesh.

These country are now importing raw sugar from Brazil and India's scope for exporting refined white sugar has been restricted as Bangladesh and the Middle East countries have set up their own refineries.

The industry is expecting another bumper sugar output next year, exceeding the current year's 27 million tonnes. Confirming the industry's outlook, Mr Pawar said the production has already crossed 27 million tonnes.

Mr Pawar said the government would chalk out a long-term policy on processing of ethanol which could be extended to 10 per cent for blending with petrol.

The sugar buffer will also be enhanced to 5 million tonnes from existing 2 million tonnes and funds for the purpose could be drawn from the Sugar Development Fund (SDF), Mr Pawar added.

UNI