The Hindu Business Line : Sugar exports likely to decline

NEW DELHI: India's sugar exports may decline by over 60 per cent to about 1.5 million tons in the 2008-09 season on expectation of lower production coupled with rising domestic prices, a top industry official said.

"Looking at the present scenario and weather conditions, sugar production is likely to be around 20 million tons in 2008-09 season,'' Indian Sugar Mills Association Director General, Mr S L Jain told PTI.

In 2007-08 season, the sugar output is likely to be close to 26.5 million tons, he said. The output was 28.3 million tons in 2006-07. Mr Jain pointed out that situation was not good a few weeks back due to drought-like situation in some of the districts of Maharashtra.

But, he said, things have now improved after revival of rains. Maharashtra is the country's largest sugar producing state. Giving the outlook on exports, Mr Jain said the overseas sales might decline to around 1-1.5 million tons in the next season compa red to four million tons in 2007-08 season.

Asked about the reasons for fall in exports, he said: "The domestic prices have gone up while the global market has softened. Price-parity should be there for making exports." The export may also be affected as the government's transport subsidy may not be extended to next year.

Food and Agriculture Minister, Mr Sharad Pawar had announced in June that the government would withdraw the export subsidy after the end of this season in September. - PTI

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