Hindustan Times (West UP)

Sugar mills in UP trade export quota at premium rate

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NEW DELHI: Sugar mills in states such as Uttar Pradesh, which do not have nearby ports to facilitate exports, have sold about 5 lakh tonnes of their export quota at a premium in the range of ₹2,500-4,000/tonne amid firm global prices.

The 2022-23 sugar export policy announced on November 5 allowed exports of 6 million tonnes of sweetener on a quotabasis till May 31.

Mills were allowed to export themselves or through exporters or swap with domestic sale quota of any other mills.

The chairman of the All India Sugar Trade Associatio­n, Praful Vithalani, said sugar mills located in states such as Uttar Pradesh, Punjab, Bihar, Jharkhand, and Chattisgar­h do not have nearby ports to undertake exports, and even if they want to export from other ports, the transporta­tion cost is huge.

The average transporta­tion cost for carrying sugar till ports is about ₹1,000 per tonne in Maharashtr­a, Karnataka, and Gujarat, Vithalani said. Sugar mills in states such as Uttar Pradesh incur more than double this cost, paying ₹2,200 per tonne, he said.

“As a result, mills in states such as Uttar Pradesh, Punjab, Bihar, and Jharkhand have traded approximat­ely 5 lakh tonnes of their export quota at a premium rate,” according to Vithalani.

Mills have sold at a premium in the range of ₹2,500-4,000 per tonne in view of the rise in global sugar prices, Vithalani said.

Global sugar prices have firmed up after India, the world’s largest sugar producer and second biggest exporter, announced its export policy for the 2022-23 season (OctoberSep­tember).

Of the total export quota of 6 million tonnes, sugar mills have entered into a contract for shipment of 4.1 million tonnes. This includes swapped quantities of 5,00,000 tonnes from the export quota allocated for mills in states like UP, he said.

In the 2021-22 season, the country exported 11 million tonnes of sugar.

 ?? HT ?? In 2021-22, India exported 11 million tonnes of sugar.
HT In 2021-22, India exported 11 million tonnes of sugar.

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