India manages to export 1.26 mt sugar so far amid global glut
BY PTI10 Aug 2015 7:12 AM IST
PTI10 Aug 2015 7:12 AM IST
Sugar output has exceeded the domestic demand in the world’s <g data-gr-id="16">second largest</g> sugar producer for the last five years and the trend is expected to continue in the current sugar marketing year (October-September) too. India exported 1.26 million tonnes of sugar during October 2014 - April 2015 period of the ongoing marketing year, according to the official data.
Sudan accounted for the highest sugar exports of 3,78,132 tonnes during the period under review, followed by Somalia (1,62,873 tonnes), Sri Lanka (1,54,020 tonnes), UAE (1,05,540 tonnes), and Tanzania (91,138 tonnes) in that order. Although exports are not viable now due to sharp decline in global prices, the government is trying all options including barter trade to push export of 4 million tonnes of surplus sugar to help cash-starved domestic mills make payment of dues over Rs 14,000 crore to cane farmers.
The sugar industry, which owes about Rs 14,398 crore to cane farmers, is unable to make payment as it is facing severe liquidity crunch on account of surplus production that has resulted in low prices of sugar in domestic markets. Ex-mill sugar prices have fallen below Rs 20/kg in the <g data-gr-id="18">country,</g> while the cost of production is over Rs 30/kg. The country is estimated to produce 28 million tonnes of sugar in 2014-15 marketing year, against <g data-gr-id="17">annual</g> demand of 24.8 mt.
Govt working on sugar exports: Sitharaman
The Government is trying to talk to different countries for clearing accumulated sugar produced in India, Union Commerce Minister Nirmala Sitharaman said on Sunday. “We just started working on it. Because quantum of sugar is annually getting accumulated. In the last four years it (the accumulation of sugar) has been quite substantial,” she told reporters here.
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