Kv Thomas Asks Sugar Mills To Look At Exports To Clear Cane Dues

12-Sep-2013

Sugar mills should focus on exports to clear payment of dues to cane farmers as the country's output of the sweetener is likely to exceed domestic demand for the fourth consecutive marketing year, Food Minister K V Thomas said today.



Exports will help mills to clear sugarcane arrears to farmers and also lead to foreign exchange earnings, he said, while acknowledging the industry for ensuring steady supply of sugar at almost stable prices after decontrol.



"It is indeed a matter of pride that we are looking at a comfortable sugar position for the fourth year in a row," Thomas said at the AGM of the National Federation of Co-operative Sugar Factories (NFCSF).



India's sugar production is estimated at 25 million tonnes in the 2012-13 marketing year (October-September) as against domestic consumption of 22-23 million tonnes. Industry has pegged 2013-14 output at 23.7 million tonnes and the figure may be revised upwards on better monsoon.



"Currently, exports of sugar are under the open general license, subject to registration with DGFT (under the Commerce Ministry). With the present exchange rate, I am sure that some players in the industry would look at the option of export, which will also help us to earn some precious foreign exchange," he observed.



As of July 31, sugar mills owed cane farmers about Rs 3,000 crore, mostly by mills in Uttar Pradesh, which have incurred a loss of about Rs 3,000 crore in the 2012-13 marketing year due to higher cost of production.



On the industry's demand to raise import duty from the existing 15 per cent, Thomas said imports are not viable at the current exchange rate.



Thomas asked the mills to help meet the requirements of ration shops in states, especially those that do not produce sugar, by offering them attractive prices and logistics support.



The minister said the Centre has already asked sugarcane producing states to consider the recommendations of the Rangarajan Committee related to cane area reservation and a revenue sharing formula between farmers and mills.



"The government of Karnataka, I believe, has already taken positive steps in this direction. I would request the industry to follow up with the state governments concerned for promoting rational policies, which will make the industry competitive while sharing the gains with sugarcane farmers," Thomas said.

Source:- economictimes.indiatimes.com