New Delhi: An Empowered Group of Ministers (EGoM) on food headed by Finance Minister Pranab Mukherjee granted permission to export 10 lakh tone of sugar through open free license. 

The decision was taken in the wake of incessant pressure from the domestic sugar mills under the leadership of Maharashtra. The announcement is likely to raise the sugar price in domestic market, stagnant since last one year.

In the current marketing season, government has pegged output of more than 246 lakh tone whereas going by the sugar mills calculation 260 lakh tone sugar would be produced.

It may be noted that the gap between domestic consumption and production has reached 40 lakh tones. Besides, old stock and spike in production rate has already created pressure on the sugar industries.

The consent for export coupled with the softening of sugar prices in global market will make domestic sugar producers earn benefit especially those in Maharashtra.

Reacting to the decision, Indian Sugar Mills Association Director General Abinash Verma said, “The exports will help in improving our cash flow, and we will be able to make timely payment to farmers in this crushing season.”

JPN/Bureau