New Delhi, April 17 Stung by the sky-rocketing price of sugar that threatens to cross Rs 30 a kg, the Government is seriously considering banning the export of sugar through all possible channels.
Highly-placed sources in the Government told Business Line here that the Government was worried over the acute shortage of cane which has led to the doubling of the statutory minimum price of Rs 81.50 a quintal.
The dire shortage of cane has also delayed the crushing season which began only in November-end instead of October.
Although the country exported sugar of three million tones in 2007-08 in the last season buoyed up by a production bounty, the grim prospect of a steep fall in sugar production in 2008-09 sugar year has compelled the Government to regulation of overseas shipments by reimposing the release order mechanism for exports from January 1, 2009 through Indian Sugar Exim Corporation Ltd (ISEC), a premium sugar exporter.
Even as this administrative instrument, through which the release order was given to traders, has ceased issuing such orders for overseas shipment since March 15, in the wake of hardening of domestic prices of the sweetener, the sources said that there are other channels such as advance license holders who might export sugar from the country. Hence, the sources said that the Government is actively mulling over clamping a ban on the export of sugar this time round to manage domestic availability with meticulous care.
Source : Business Line