Export of Sugar will help Faster Clearance of Cane Price Arrears to the Farmers-Prof. K.V.Thomas.

New Delhi: Ministry of Food in principle does not have any objection to permit further export of sugar as it will help faster clearance of cane price arrears and help the country to earn some precious foreign exchange. This was stated by Prof. K.V. Thomas, Minister for Consumer Affairs, Food and Public Distribution while addressing the annual general meeting of National Federation of Cooperative Sugar Factories here today. He said that Government policies, including, the ones relating to sugar exports, are aimed at balancing the interest of consumers, farmers and the industry. Prof Thomas assured that while reviewing sugar export policy, his Ministry will be fair to all stakeholders.

Full text of the Minister’s speech is as follows:-

“Last year when I addressed this august gathering I had made certain requests to the industry and had also promised to look into certain issues. I stand here with satisfaction that the promises made have been fulfilled to a large extent. The Government has gone ahead with the partial decontrol of the sugar sector and abolished the levy on sugar production and the periodic release mechanism. The industry has on its part ensured a stable supply of sugar at almost stable prices during the past one year. In the process there have been some difficulties with cash flows given the global bearish trends in sugar price. I am sure the industry is resilient enough to come out of this position.

The President NFCSF, Shri Awade has given us a synopsis of the global sugar scenario as well as the expectations regarding the sugar crop in India during 2013- 14. It is indeed a matter of pride that we are looking at a comfortable sugar position for the 4th year in a row. A point has been made for permitting further export of sugar during the next sugar season. In principle there can be no objection to this request as it will help faster clearance of cane price arrears. Currently, exports of sugar are under the open general license, subject to registration with DGFT. With the present exchange rate, I am sure that some player in the industry would look at the options of export, which will also help us to earn some precious foreign exchange. Our policies, including, the ones relating to sugar exports, are aimed at balancing the interests of consumers, farmers and the industry. Let me assure you that if and when sugar export policy is reviewed, we shall be fair to all stakeholders.

As regards imports, a request has been made for an increase in the import duty of white and raw sugar. Currently the import duty is at 15% and with the changes in the exchange rate, it is considered unlikely that it would be viable to import sugar.

On the decontrol of sugar, I may like to add that while the request of the sugar industry by and large has been met, it is incumbent on the industry to ensure that all pending levy sugar obligations are cleared at the earliest. If there is any issue, it may be taken up with the Department of Food for early reconciliation. I would also expect the industry to fulfill its obligations of meeting the requirements of the States, especially those which do not produce sugar by offering them attractive prices and good logistic support.

I understand that the Department of Food has already taken up with the sugarcane producing states to consider the recommendation of the Dr. Rangarajan Committee relating to cane area reservation and revenue sharing formula. The Government of Karnataka, I believe, has already taken positive steps in this direction. I would request the industry to follow up with the State Governments concerned for promoting rational policies which will make the industry competitive while sharing the gains with the sugarcane farmers.

An issue has also been raised regarding some claims not being agreed to by the Income Tax Department. The matter is already before Court and I am sure that a reasonable solution would be found soon. It is not considered appropriate to intervene in the matter which is already sub- judice and I am sure your would appreciate my position in this regard.

The reiteration of the Government of its commitment to Ethanol Blending Programme will in no little measure boost the prospects of better utilization of by-products in the manufacture of sugar and I hope that the industry is able to take advantage of this step to improve its bottom-lines. I need not reiterate the utility of the EBP programme in saving of foreign exchange. I believe that with fresh tenders having been floated by the OMCs, the onus is entirely on the sugar industry to ensure supply of ethanol at appropriate prices. I am glad that the sugar industry is confident of meeting the domestic requirement and I wish them all the very best in this endeavour.

I have noted your concerns regarding certain changes that have been made with regard to the assistance through loans from the Sugar Development Fund as well as the changes requested by you. We have tried to expedite the processing of loan applications and make it transparent in the best possible manner. I must say that there is scope for improvement and I am sure that Department is looking at this aspect for improving service standards. I am informed that all loan applications submitted to the SDF have been processed and as on date there are no applications which are more than three months old.

While on the issue of the Sugar Development Fund, those who have availed of the assistance must also accept the responsibility towards timely repayment of their installments so that the Fund can go on helping the industry. Negative net worth societies should improve their performance and State Government should infuse fresh equity to make these mills positive net worth societies. Also, better recoveries will boost confidence in the industry and allow for further relaxation in the conditions attached to the grant of assistance.

I must congratulate the sugar factories who are the recipients of this year’s Efficiency Awards. They must strive for better performance in future and I agree with the President NFCSF that other factories should strive to meet these standards in the years to come.

My best wishes to NFCSF on the completion of another year of achievements and my assurances on meaningful support to the industry and its contribution to the growth of the Indian economy”.

Source : orissadiary.com