New Delhi: Indian Sugar mills are facing problems to achieve the target set by the government to export sugar. Following the record sugar production, the government had set a target of exporting 50 lakh tonne sugar for the year 2018-19. But the mills could export 23 lakh tonne sugar (46 per cent of set target) by April end.
According to experts, the reduction in export may increase problems in the domestic sugar market.
Following the record sugar production, the sugar sector was reeling under the pressure of excess sugar. The government declared sops to mills to promote sugar export, but mills could export 46 per cent sugar in the first seven months.
“The pace of signing agreements to export sugar have slowed down. Earlier 4 lakh tonne sugar was exported per month which was reduced to 2 lakh tonne for the next few months. Now the chances of export are bleak in the next few months,” said a source from the sector.
Possibility of exporting 30 to 35 lakh tonne sugar
Sugar mills from India have signed agreements to export 28 lakh tonne sugar so far and have exported 23 lakh tonne sugar. During this season, there is a probability that they may export total 30 to 35 lakh tonne sugar.
