Date:22/11/2006 URL: http://www.thehindu.com/2006/11/22/stories/2006112203810400.htm

Karnataka - Bangalore

Lift ban on sugar export, says mills association

Special Correspondent

Bangalore: The Government should lift the ban on export of sugar in the interest of the industry and sugarcane farmers, South Indian Sugar Mills Association (SISMA), Karnataka, has said.

Speaking to presspersons after a meeting of the association here on Tuesday, association president M. Srinivasan said India was producing more sugar than its domestic needs. If the export ban was not lifted, there would be a decline in sugar prices, resulting in losses to the mills, he added.

The Government should liberalise its policy on export of co-generation products such as ethanol and molasses, he said and suggested that an all-India policy be framed to govern their production and sale.

Molasses production was expected to touch 8.5 lakh tonnes in the coming year and the State would be able to use only half of the quantity, he said. The Government should allow a bigger share of ethanol blending with petrol from the existing five per cent, he added.

On the policy on the minimum distance between two sugar mills, Mr. Srinivasan said the present 15 kilometres should be increased to at least 25 kilometres. Economics of production did not allow two sugar mills to function viably within such a short distance, he added.

About the demand for support prices by sugarcane farmers, some of the mill owners said the price of Rs. 1,200 was not viable and pointed out that Maharashtra had fixed a support price of Rs. 900.