Govt permits 8 lakh tn of sugar export since Jan 3

The Centre has issued export permits for 8 lakh tonne sugar since January 3 till the week ended March 9, a government official said today.

Of the total 800,000 tn sugar export approved, only 100,000 tonne has been exported so far, the official said.

He said most of these permits have been issued recently, and exporters have two months before the orders lapse.

Of the total, 550,000 tonne permits have been issued under the open general licence and the rest against advance licences.

Although the food ministry has been rapidly clearing permits for exports""both against advance licence and open general licence scheme""shipments from the country have been low due to weak international prices.

The sugar industry is seeking export subsidy as low global prices are making overseas sales economically unviable. The sugar industry is likely to seek export permits for about 1 million tonne in the current sugar year that ends September 30.

Total exports will, however, depend on global prices May onwards.

According to official estimates, the industry has already lost business worth$100 million (Rs 440) due to the export ban, which was imposed to augment domestic supplies, check prices, and tame inflationary tendencies.

Before the ban was imposed in June, international white sugar prices were over $500 a tonne, which have now eased to $335-323 a tonne.

The government had on December 18 allowed mills with advance licences to sell the commodity overseas followed by complete lifting of the ban on January 11.