Agriculture and Food Minister Sharad Pawar has supported sugar farmers and mill owners who want sugar exports to be brought under open general license (OGL).
Pawar said time was ripe for this with global sugar prices around $693 a tonne and domestic sugar production estimated at 25 million tonnes. He said he would ignore the opposition to exports and take a decision.
“Sugar prices in the global market are quite high and this is the right time for exports. I am of the view that cane farmers and mills should benefit from high prices,” he told Business Standard, adding the decision would be taken at an appropriate time.
The Centre has allowed advanced license export obligation of about one million tonnes for exports. Exports under OGL were banned in February 2009 in the wake of a fall in sugar output to 14.7 million tonnes in 2008-09. The 2009-10 output was 19 million tonnes.
Following a rise in sugar production this season, the National Federation of Cooperative Sugar and the Indian Sugar Mills Association have repeatedly sought permission for exports.
Mills said there was a mismatch of around Rs 250 a quintal between the production cost and the selling price. The realisation is estimated at Rs 2,450 a quintal while the production cost is Rs 2,700 per quintal. They say pressure on them will be eased if they are allowed to export.
Pawar said he faced opposition when he allowed cotton exports. Those who opposed cotton exports argued that cotton mills would be forced to buy at higher prices. “However, due to cotton exports, farmers benefited and got Rs 4,200 a quintal,” he said.
The Union minister told millers to become more professional in carrying out operations while addressing a gathering in Ahmadnagar district. He had hinted that the time had come for sugar decontrol and millers should be ready to face global competition.
