To overcome the inconsistencies in farm export-import policy, the Government is considering allowing a minimum level of quantity for the export of select agri-commodities to help India become a stable player in the global market.
“We are working on a mechanism to have a stable export-import policy on select agricultural commodities such as sugar, wheat and rice,” Food Minister K.V. Thomas said at the Kingsman 4th Indian Sugar Conference here today.
“It is not good that some years we start exporting and suddenly we stop. We are in discussion with the Commerce Ministry to allow wheat, rice and sugar exports at certain level,” he said.
The stable policy on export will help both farmers and industry, he added.
Thomas also noted that the present export policy on wheat, rice and sugar will continue.
The country has exported 3.15 million tonnes of sugar so far this year. Besides, about 2.5 mt of wheat and more than 4 mt of non-basmati rice have been shipped since September 2011, when the export ban on these two items was lifted.
Sugar decontrol
On decontrol of the sugar sector, Thomas said: “We have been conscious about the need to revisit the regulatory norms on the sugar sector. The Rangarajan Committee on sugar decontrol has finalised the report and will very soon submit to the Prime Minister.”
Once the report is approved, it will be ready for implementation, he added.
Sugar sector is the only industry which is fully controlled by the government. It is regulated right from production through distribution in domestic and global markets.
Sugar production
On next year’s production, Thomas said, “We are likely to produce enough sugar to meet the consumption demand and will perhaps have a small exportable surplus.”
However, the Government will formulate the first estimate on sugar output by the end of this month in consultation with the state sugar commissioners, he added.
The country’s sugar economy is approximately $16 million and impacts 50 million farmer families.
India is estimated to have produced 26 mt in the ongoing 2011-12 marketing year (October-September) against the annual demand of 22-23 mt.