Date:31/03/2006 URL: http://www.thehindubusinessline.com/2006/03/31/stories/2006033104500100.htm

Back STC may export 3 lakh t sugar

Our Bureau

New Delhi , March 30

The Union Minister for Agriculture, Mr Sharad Pawar, today said that the Government would allow State Trading Corporation (STC) to export up to 3-4 lakh tonnes of sugar.

This follows a proposal from STC asking for permission to export sugar in the backdrop of soaring international prices. "The STC has asked for exports of 3-4 lakh tonnes of sugar. We will allow it," Mr Pawar told newspersons without giving a time frame by when the decision would be taken. According to available indications, the Ministry is studying the proposal, but is yet to take a final decision on the issue.

Currently, only sugar mills which have an obligation to export sugar against import of duty-free raw sugar are allowed to ship.

Raw sugar was imported during 2004 and 2005 when domestic production declined.

On Thursday, sugar prices in the global market were hovering near 16-year high of $475 a tonne. In the last one month, the Indian Sugar Exim Corporation has won two tenders totalling one lakh tonnes to export sugar to Pakistan at $478 and $473 a tonne, respectively.

India's sugar production during the crop year ending in September is expected to be around 18.5 million tonnes, up from 13 mt last year, Mr Pawar said.

Wheat import

He also said the Government is considering the option to float a new tender to import wheat.

"There is no shortage but I have to build stocks. I would float a tender for additional imports of about 1.5 mt of wheat in a week or two," he said.

Meanwhile, according to information available with Business Line, at present, the Government is considering additional import of wheat only as a "contingency plan in case domestic wheat prices go further up" and is yet to firm up its mind.