India, the world’s second-largest sugar producer and largest consumer, may decide
on allowing more sugar exports after September, Food Minister K V Thomas said on Tuesday.
“We are not in a hurry at all (for more sugar exports) as global prices are likely to remain steady until January,” Thomas told reporters in N Delhi.
The country is likely to have 5.9-6 million tonnes of stocks at the start of the next sugar season, beginning October 1, which will be sufficient to meet peak festival season demand, he said.
Thomas also said the government may consider allowing additional sugar exports after September when the current sugar year comes to an end.
Yesterday, cooperative sugar factories body National Federation of Cooperative Sugar Factories (NFCSF) had sought the government’s permission for an extra 500,000 tonnes of sugar exports to cash in on high global prices.
The sugar year runs from October to September.
The government has so far allowed 2.2 million tonnes of sugar exports this sugar year, out of which 1 million tones was allowed under Open General Licences.
Sugar exports have been permitted as domestic output is exceeding demand. India’s sugar production in the 2010-11 sugar year is expected at 24.5 million tonnes, while demand is
likely to remain at 22-22.5 million tonnes.