Isgeic to export sugar to European Commission

ISGEIC’s exports will include 10,000 tonnes of raw sugar and equal amount of white sugar, which would shipped to Europe from the Chennai port in early June, sources said.

The corporation has already registered the full quantity with the agriculture and processed food products export development authority.

ISGEIC is the body floated by the private sugar mills to undertake export of the commodity to international market.

ISGEIC’S attempts to export sugar to Europe at a time when global prices are lower than domestic prices have been prompted by private mills’ eagerness to remain in the international market, source said.

While the white sugar to be exported to the EC is being produced by MC Agro, a private mill in Tamil Nadu, the raw sugar is being manufactured by Malegaon factory near Chennai.

Though the union cabinet had earlier this month approved export of sugar in value-added form upto 25,000 tonnes, private mills have developed a cold feet to the proposal, fearing incurring of huge losses.

Asked whether export being undertaken by ISGEIC would fetch any profit to the corporation, National Federation for Cooperative Sugar Factories (NFCSF) managing director MS Marathe said "it would not be incurring loss."

Government had decanalised sugar exports in December 1996 and despite permission for exports upto 2.5 lakh tonnes the same year, only 1.5 lakh tonnes of sugar was shipped abroad.

Directorate General of Foreign Trade (DGFT) is yet to notify export of sugar, wheat and moving of all the oilseeds into the free list of imports as per the cabinet decision.

As the international prices of sugar is available at around Rs 11,000 per tonne as against domestic prices of about Rs 16,000, private traders are estimated to have imported about 1.6 million tonnes of sugar between September 1997 to April 1999.

Imports during the first two months of the current fiscal have risen to 3.79 lakh worth $7.7 million, sources said.

The country is currently saddled with a huge stock of nearly 23 million tonnes of sugar including the current year’s bumper production of over 15 million tonnes.