Tamil Nadu: Make exports compulsory for sugar mills, plead industry association
Chennai: The sugar mills in Tamil Nadu, whose production has been exceeding domestic demands since the last two seasons, want the government to make exports compulsory for each sugar mill.
As per the estimates of the Indian Sugar Mills’ Association sugar production during the 2018-2019 (October to September) season to be 35 million tons. During 2017-2018, it was about 32 million tons. The carryover stock is 10.3 million tons. The domestic demand is about 26 million tons and about five lakh tons sugar were exported in 2017-2018.
The industry is keen on improving the performance in the next sugar season starting this month. And as the Indian sugar sector steps into a new season, it anticipates more exports, price stability in the domestic market, and clearance of cane arrears to farmers.
“We eagerly await an announcement by the government to make exports compulsory for each sugar mill, along with procedures for strong implementation to ensure that each sugar mill fulfils its individual export target,” Abinash Verma, Director General of ISMA, said.
In Tamil Nadu, with poor rainfall hitting sugarcane production for the last six years, capacity utilisation dropped to 27% and production in 2017-2018 was just 0.7 million tons. It is expected to be 0.85 million tons in 2018-2019 and capacity utilisation at about 32 %. With lower capacity utilisation, the cost of production of sugar for TN mills will be higher by Rs 10 a kg compared to mills in other States.
The Centre recently announced a Rs 5,500-crore package. It includes Rs 1,375 crore towards internal transport, freight handling, and other charges for exports and Rs. 4,163 crore directly to farmers as part of fair and remunerative price (FRP) for 2018-19, if they fulfil the stipulations of the Department of Food and Public Distribution.
