India could turn sugar exporter, says Pawar

New Delhi: Union agriculture and food minister Sharad Pawar on Thursday indicated that the country could enter the international sugar market as an exporter in the two years. Sugar production in the current year was expected to be around 18 million tonne, as against the 12 million tonne last year, despite heavy rainfall that damaged crops in Maharashtra.

Speaking at the sidelines of the inaguration of a meeting on on public-private participation in agriculture research and development, Pawar said that there also was carryover stock from last season. He said there was no official ban on the export or import or re-export of sugar. With domestic production looking up, there was every chance that the Indian sugar would appear on foreign markets next year or the year after that.

Asked about government's move to cut monthly wheat and rice quotas and raise public distribution system (PDS) prices of sugar in non-poor areas, the minister said that the move would come into effect only after evolving a political consensus, but for the moment the issue is on hold. He also indicated that the procurement of wheat might be advanced by a fortnight as part of the price management strategy.

The changes in PDS norms mooted by the food ministry and approved by the Cabinet Committee on Economic Affairs (CCEA) had envisaged a reduction of monthly grain quota for non-poor households from 35 kg to 20 kg and for poor households from 35 kg to 30 kg. The prices of wheat and rice were raised by Rs 85 a quintal and Rs 95 a quintal, respectively, for those above the poverty line but were kept unchanged for the poor households.

The decision was, however, not enforced due to opposition from the Left and other parties. Pawar added that the government was in the process of evolving a consensus as many political parties have opposed the move to cut food quota and raise prices.

-Agriculture Editor
Business Standard
January 20, 2006