The National Federation of Cooperative Sugar Factories on Friday pitched in for export of 5 lakh tonnes of sugar under open general licence (OGL).
According to a statement from the federation, allowing the export of sugar under OGL will enable sugar mills to make timely payment of remunerative price to the sugarcane growers.
The Centre had last month said that five lakh tonnes sugar would be allowed for exports under OGL but following a surge in inflation, it has put the decision on hold.
The federation drew support for its demand on production estimates 25 million tonnes (mt) during the current season (October 2010-September 2011) against a demand of 23 mt in the domestic market.
It said production in January is projected at around 4.77 mt compared with 4.11 mt last year. Up to January, sugar production is expected to be 11.2 mt against 10 mt in the year-ago period, up 11 per cent.
The federation said carryover stock is pegged at around 5 mt providing for a 7 mt surplus. These estimates, it said, made a case for export of 2.5 mt of sugar through the Advance Licence scheme.
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