The slide in sugar prices aftermath the coronavirus pandemic along with plunge in oil prices has become a ball and chain in the sugar industry. According to experts, although India’s sugar production may not be affected as a result of it, consumption may take a back seat. The stakeholders in the industry are left in a worrisome position with the fear of piling sugar stocks, cane arrears, bank interests etc. Industry bodies are in talks with the Government to take steps that would bring ease in the current situation.
In a conversation with ChiniMandi News, Mr. Sanjay Khatal – Managing Director – Maharashtra State Co-operative Sugar Factories Federation Ltd. expressed his views on the current scenario. He said, “With the trade becoming stagnant, logistics turning sluggish, restrictions on movements has overall put all the industry in a difficult situation. We have already requested the Government of India to withdraw the norm of the deadline date and allow open trade flow for sugar exports or extend the mill wise, Minimum Export Quota (MIEQ) for the sugar season 2018-19 till 30th September 2020 which the Government had recently extended till 14th March 2020.”
“Since the situation is very mercurial, traders and exporters are reluctant to lift sugar sugar stocks leaving sugar millers panicked, it is essential that the Government doesn’t impose any deadlines for sugar exports except the annual deadline of 30th September by which time hopefully the situation would normalize and trades would start flowing.” He added.
In a notification released today i.e. 25th February 2020, the Food & Public Distribution announced that the sugar mills which have partially exported their MIEQ for 2018-2019 sugar season till 30.09.2019, to export the balance quantity of their MIEQ of 2018-19 sugar season by 14.03.2020 over and above the Maximum Admissible Export Quantity allocated for 2019-2020 sugar season.
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