Monday 2 December 2013

Government May Scrap Sugar Export Registration

The government is considering removal of the mandatory registration process for sugar exports in view of surplus production this year.


The move would come as a boon to the cash-starved industry by fast-tracking shipments. “The issue related to scrapping sugar export registration was discussed in the informal meeting of ministers last week. The matter is under consideration,” a senior government official said.


Currently, exporters are required to register sugar shipments with the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry. The DGFT last month doubled the limit per overseas sugar shipment to 50,000 tonnes.


Last year, India exported 4 lakh tonnes of sugar. Mills are targeting exports of up to 40 lakh tonnes this year. Global prices have plummeted due to surplus production in some countries. Indian mills are eyeing exports of raw sugar, which commands a premium.


Sugar mills across the country have started crushing operations for the 2013-14 marketing year (October-September).


Private mills in Uttar Pradesh yesterday ended over a week-long standoff with the state government over cane prices and agreed to commence operations.


The industry forecasts sugar production of 25 million tonnes this year, higher than the government estimate of 24.4 million tonnes and more than sufficient to meet domestic demand of 23.5 million tonnes. Last year, the country produced 25.1 million tonnes of sugar.


Source:- thehindubusinessline.com





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