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Food Ministry issues export release order for 2, 32,000 tonne of sugar

Mills have been given a time of 45 days from the notified day to apply for export release orders, which will be valid for 60 days.

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Toyota unveiled its Etios Motor Racing series at the Auto Expo 2012

The Food Ministry has issued export order for 2.32 lakh tonne of sugar out of total 10 lakh tonne the government had allowed for overseas shipments in 2011-12 marketing year (October-September).

Sugar mills cannot export the sweetener without release order from the Food Ministry.

On November 22, 2011, an Empowered Group of Ministers (EGoM) on food, headed by Finance Minister Pranab Mukherjee, had allowed mills to export 10 lakh tonne of sugar under Open General Licenses (OGL) in the 2011-12 marketing year (October-September).

The decision was notified on December 2, last year and 10 lakh tonne was allocated to the mills based on their average output over the last three years.

According to the latest data, the ministry has issued export release orders for 2, 32,454 tonne within a month after the notification.

Mills have been given a time of 45 days from the notified day to apply for export release orders, which will be valid for 60 days.

The EGoM had decided to allow sugar exports, although with a quantity restriction of 10 lakh tonne, as the country's output is estimated to outstrip demand in 2011-2012.

In the 2010-11 marketing year, the government had allowed 26 lakh tonne of exports, out of which 15 lakh tonne was through OGL in three tranches.

Sugar production in India the world's second largest producer and the biggest consumer is estimated at 25-26 million tonne in this marketing year. The country's annual demand is pegged at 22 million tonne.

In the 2008-09 and 2009-10, sugar production was below domestic consumption, at 14.53 million tonne and nearly 19 million tonne, respectively. The country had to import about 6 million tonne of sugar to meet the shortfall.