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The government has scrapped the 20 percent export duty on raw and refined sugar. To access the impact of this development, CNBC-TV18 spoke to Vivek Saraogi, MD Balrampur Chini.
Sarogi says scrapping of export duty is not going to have any positive impact because of the loss in exports and the domestic prices would continue to remain subdued.
With regards to sugar production, he says it would likely be higher next year than this year. This year too there was surplus production and so the industry is staring at a huge surplus. Therefore, both the Centre and the state needs to step in and take proper steps.
The Indian sugar mills have requested Centre for exports backed by loss-mitigation and requested State government to participate in cane pricing.
According to him, if there is no action from the Centre then the sugar realisations are going to be under pressure for the next few quarters