The government would take a final call on allowing more sugar exports only by the end of September, after assessing the demand and supply scenario, food minister K V Thomas said. He said the position on actual demand would become clear by September, as during that time the government would lift the stock holding limit on traders. At present, traders can’t keep sugar stocks in excess of 500 tonnes in a month.
“According to our current assessment, we have stocks of around 6.2-6.3 million tonnes (mt), required to meet the domestic demand for the next three months. Hence, at present, we can’t take a call on exports,” he said.
He said the country’s sugar production in 2010-2011 was estimated to be around 24.5 mt, up from the earlier estimate of 24.2 mt. With an opening stock of 4.86 mt, the total sugar available this year has been 29.36 mt. “Of this, 21-21.5 mt has already come into the market and 2.1 mt exported, which leaves us with a stock of 6.2-6.3 mt,” Thomas said. India has allowed exports of 1 mt sugar under the open general license and another 1.1 mt through the advance license scheme.
However, sugar mills have been demanding exports of another 1 mt in view of bumper sugar production expected in the next crop season that starts from October. Industry officials expect India’s sugar production in 2011-2012 crop season to be around 26-26.5 mt.