No net export of sugar to EU: government

The centre today refuted reports appearing in a section of the press that the country has exported 10,000 tonnes of sugar so far this fiscal even ad domestic prices continued to rise and said the exports of sugar to the European Union was on a reciprocal basis.

The department of food and public distribution in the ministry of consumer affairs, food and public distribution had, last week, said that the reports about government's permission to export 10,000 tonnes of sugar to the European Union were out of context and were not in the correct perspective.

The government has been allocating the EU preferential sugar export quota to the Indian Sugar Exim Corporation Ltd, since 1997. Even when the ban on export of sugar was imposed in June 2006, the export of preferential quota to the EU countries was allowed, the release said.

It said, the EU, through the Commission of the European Communities regulation `Opening and providing for the administration of certain community tariff quota in the sugar sector', on 25 September 2009, had, in turn, "allocated duty free 10,000 metric tonne of sugar to India."

The department had pointed out that not availing of this quota by India might lead EC to reduce quantities of import quota from India, which may not be in the country's interest.

The statement, released by the department, inter alia, pointed out that the EU was a vast market with a high degree of potential for export of Indian agricultural products. "Earlier, when sugar was in surplus, India has been requesting for opening the market and not restrict by quota or increase quota for India," it added.

The Indian Sugar Exim Corporation was allowed to export 10,000 metric tonne of sugar to the EU countries subject to the condition that the corporation imports an equivalent quantity of sugar in this season, so that there would be no net export of sugar from the country, the release pointed out.

"Although, there is no ban on export of sugar, export under OGL is subject to release order mechanism of the government since 1 January 2009. The department will issue export release order to the Indian Sugar Exim Corporation only after receipt of requisite documents from the corporation relating to import of 10,000 metric tonne of sugar as per said condition," it added.