Under Mulayam Singh's tenure a new Sugar expansion package was announced by the State Government, which was availaed of by Bajaj Hindustan, Balrampur, Dhampur, Oudh and Upper Ganges. No one thought about the supply of Sugarcane, so even as global Sugar prices rise why is the industry crying now? I think they will cry much more in 2009, when there will be no cane to crush.
Sugar exporters have expressed their dissension over the Finance Minister, Mr P. Chidambaram's suggestion to discontinue the subvention (grant of money) given to sugar exports before its deadline of September 30.
Speaking to reporters on the sidelines of a function to inaugurate currency futures at the National Stock Exchange, Mr Chidambaram said: "In my view, the subvention given for sugar exports must now come to an end. Much sugar has been exported now. I have spoken to the Ministry of Agriculture regarding this."
Of the export target of 45 lakh tonnes till end-September, sugar companies have exported 43.7 lakh tonnes till date. Last year, 18 lakh tonnes were exported.
Mr Naik Navre, Managing Director, Federation of Cooperative Sugar Industry in Maharashtra, said the move, if implemented, will be highly detrimental for the industry. "It will lead to exporters defaulting on their commitments and earn a bad name for the country," he added.
The Government announced a subvention of Rs 1,350 a tonne on sugar exports last year on the back of a bumper production. Last few months sugar prices have been rising in the domestic markets raising Government's concern.
"The removal of subvention will not have any impact on the domestic prices as they are driven by other factors," said an exporters
Overseas scenario
Expectation of lower sugarcane output in India and Brazil next year has pushed up global prices by over 17 per cent in last three months. In fact, sugar was the only commodity that has withstood the sharp correction in commodity prices, said an analyst.
According to International Sugar Organisation, global sugar output is expected to fall 4 per cent to 161.6 million tonnes (mt) in sugar season ending September, 2009. In India, output is estimated to drop by 17 per cent to 22 mt next season, said Indian Sugar Mills Association.
The area under sugarcane cultivation in Maharashtra is also expected to go down by 26 per cent to 8 lakh hectares in 2008-09 against 10.88 lakh hectares last year. Consequently, the cane output is expected to drop 21 per cent to 702 lt (855 lt), while cane available for crushing is estimated lower by 35 per cent at 500 lt (761 lt).
Sugar production will be down 37 per cent to 57 lt (90.96 lt).
The sugar production in 2008-09 is estimated to fall 20 per cent to 217 lakh tonnes (lt), against 273 lt. It may slip further by 14 per cent to 187 lt in 2009-10 sugar season.
Sugar exporters have expressed their dissension over the Finance Minister, Mr P. Chidambaram's suggestion to discontinue the subvention (grant of money) given to sugar exports before its deadline of September 30.
Speaking to reporters on the sidelines of a function to inaugurate currency futures at the National Stock Exchange, Mr Chidambaram said: "In my view, the subvention given for sugar exports must now come to an end. Much sugar has been exported now. I have spoken to the Ministry of Agriculture regarding this."
Of the export target of 45 lakh tonnes till end-September, sugar companies have exported 43.7 lakh tonnes till date. Last year, 18 lakh tonnes were exported.
Mr Naik Navre, Managing Director, Federation of Cooperative Sugar Industry in Maharashtra, said the move, if implemented, will be highly detrimental for the industry. "It will lead to exporters defaulting on their commitments and earn a bad name for the country," he added.
The Government announced a subvention of Rs 1,350 a tonne on sugar exports last year on the back of a bumper production. Last few months sugar prices have been rising in the domestic markets raising Government's concern.
"The removal of subvention will not have any impact on the domestic prices as they are driven by other factors," said an exporters
Overseas scenario
Expectation of lower sugarcane output in India and Brazil next year has pushed up global prices by over 17 per cent in last three months. In fact, sugar was the only commodity that has withstood the sharp correction in commodity prices, said an analyst.
According to International Sugar Organisation, global sugar output is expected to fall 4 per cent to 161.6 million tonnes (mt) in sugar season ending September, 2009. In India, output is estimated to drop by 17 per cent to 22 mt next season, said Indian Sugar Mills Association.
The area under sugarcane cultivation in Maharashtra is also expected to go down by 26 per cent to 8 lakh hectares in 2008-09 against 10.88 lakh hectares last year. Consequently, the cane output is expected to drop 21 per cent to 702 lt (855 lt), while cane available for crushing is estimated lower by 35 per cent at 500 lt (761 lt).
Sugar production will be down 37 per cent to 57 lt (90.96 lt).
The sugar production in 2008-09 is estimated to fall 20 per cent to 217 lakh tonnes (lt), against 273 lt. It may slip further by 14 per cent to 187 lt in 2009-10 sugar season.
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