Export limit for sugar balance quota extended for another three months

(PTI) New Delhi, Ta. November 11, 2019, Monday

The government has extended the deadline for export of sugar last year's balance quota by three months to December. Exporters have been able to export 3 lakh tonnes of sugar in the marketing year from October 1 to September.

Under the Minimum Inductive Export Quota Scheme, the target of exporting over five lakh tonnes of sugar was kept last season, but due to poor market conditions in the export market, the target was not achieved.

The exporters who have partially exported sugar from their quota till September 1 have been given time till December to export the remaining sugar under this scheme, a notification issued by the Food Ministry said.

This will be in addition to the quota fixed for the marketing year 1-3. In the last marketing year, most of the sugar was consumed in the Middle East, Iran, Afghanistan, Bangladesh and Sri Lanka.

For the current marketing year, the government has fixed an export quota of 1 lakh tonnes of sugar under the Minimum Inductive Export Quota Scheme. Due to the shortage of four million tonnes of sugar in the global market, export quotas are expected to be completed.

The marketing year of 2-3 years has started with 1.5 million tonnes of sugar stocks, which usually start with 1 to 2 lakh tonnes of stock. In the current year, the country's sugar production is projected to remain low at 8.5 million tonnes to 1.5 million tonnes. Last year, the figure stood at 8.5 million tonnes.

Sugarcane production in Maharashtra and Karnataka has declined due to decline in sugar production. There are 3 sugar mills in the country. In Maharashtra and Karnataka, crushing operations have been delayed.