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Our Bureau

Govt open to suggestions of decontrolling industry

NON-COMMITTAL: The Indian Sugar Mills' Association President, Mr C.S. Nopany, welcoming the Union Minister for Agriculture, Food and Consumer Affairs, Mr Sharad Pawar, to the 72nd annual general meeting of the association in the Capital on Wednesday. — Ramesh Sharma

New Delhi , Dec 13

The Union Agriculture Minister, Mr Sharad Pawar, on Wednesday said the present time was "appropriate" for lifting the ban on export of sugar, even as he refused to spell out a definite date from which the decision would be effective.

Availability

"I have taken stock of the sugar availability position and this is the proper time to take a decision on exports. But since it was the Union Cabinet that imposed the ban, only it can lift it. When it will do, I cannot say now," Mr Pawar told newspersons on the sidelines of the 72nd Annual General Meeting of the Indian Sugar Mills Association (ISMA) here.

According to the ISMA President, Mr Chandra Shekhar Nopany, the decision to ban exports from June 22 had led to a loss of business worth at least $100 million (Rs 450 crore).

"We could have shipped out around one million tonnes (mt) during this period. Although we will have no option but to export two mt during the 2006-07 season (October-September), international prices have fallen from over $480 a tonne (when the ban was imposed) to less than $350 a tonne now. The export ban has also reduced domestic price realisations, which is an additional loss to the industry," he said.

Export assistance

Mr Nopany said even if the industry were allowed to resume exports, it would not be viable at current global prices. "We would urge the Government then to reintroduce export assistance measures that are compliant with the World Trade Organisation (WTO) rules. These could include reimbursement of internal freight costs from factory to port and a partial ad-hoc ocean freight assistance component as was prevalent in 2002-03," he added.

In his address, Mr Pawar said the Government was open to ISMA's suggestions on lifting the sugar export ban as well as decontrolling the industry by doing away with the monthly release mechanism and the requirement for mills to supply 10 per cent of their produce as levy for the public distribution system. He, however, chided the industry for its demand to increase the minimum distance norm between two mills from the existing 15 km to 25 km.

"You cannot have free export and total decontrol on sales and, at the same time, controls on farmers with respect to supplying cane. How will not allowing factories to come up within 25 km of one another benefit farmers?" Mr Pawar quipped.

More Stories on : Sugar | Agricultural Policy | Exports & Imports

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