India may export sugar to Pakistan
India, the world’s second largest sugar producer is considering granting permission to sugar
mills to export the sweetener to its neighbouring country Pakistan who is facing a
shortage after a recent drought cut the country's sugar cane output by 21 per cent,
thereby doubling its prices. Commenting on this issue, SL Jain, Director General
of Indian Sugar Mills Association (ISMA) said, "We've had discussions at the
highest level and the government has taken a favourable view. I expect a
decision very soon." It may be recalled that Pakistan had recently lifted a
four-year ban on sugar imports from India, with a view to help the situation
on the home front and stem local prices that have almost doubled to about
Rs 30 per kg. Mr Jain further believed that sugar exports to Pakistan may
not drain the country's supplies as output is expected to rise by 40 per cent
next year, ending two years of shortage. Jain highlighted that it becomes quite
necessary for Indian mills to get export approval from the government, since it
controls the quantity and the time of the sale. According to the Association, India is
likely to produce 18 million tonnes of sugar in the current crop year till September 2006, up from
an estimated 12.9 million tonnes, thanks to the improvement in crop prospects due to the
above-average rains that the country received this year.
