Press Trust of India / Mar 27, 2012, 17:01 IST
The sugar industry today demanded that the government should allow further exports of 1 million tonne in the next 15 days to improve cash flow of mills for clearing cane arrears, which is threatening to touch Rs 10,000 crore by April.
An empowered group of ministers (EGoM) on food had yesterday allowed an additional export of one million tonne, taking the total quantity permitted in the current 2011-12 marketing year (October-September) to three million tonne.
Indian Sugar Mills Association Director General Abinash Verma hailed the export decision, saying this would help sugar mills generate cash flow and clear the pending cane payments of the farmers.
He, however, felt that more exports should be allowed considering surplus output.
"The industry feels the government should examine allowing sugar exports of another 1 million tonne in the next 15 days. This will clear cane arrears which are threatening to cross Rs 10,000 crore mark by April," he said in a statement.
Verma said it would be a daunting task for the mill owners to clear the arrears unless further cash flow is generated.
The cane arrears stood at over Rs 8,409 crore till February of this marketing year, according to the government data.
Sugar output is estimated to be 26 million tonne in the 2011-12 marketing year higher than the annual domestic demand of 22 million tonne. The country had exported 2.6 million tonne in the 2010-11 marketing year.
The sugar industry today demanded that the government should allow further exports of 1 million tonne in the next 15 days to improve cash flow of mills for clearing cane arrears, which is threatening to touch Rs 10,000 crore by April.
An empowered group of ministers (EGoM) on food had yesterday allowed an additional export of one million tonne, taking the total quantity permitted in the current 2011-12 marketing year (October-September) to three million tonne.
Indian Sugar Mills Association Director General Abinash Verma hailed the export decision, saying this would help sugar mills generate cash flow and clear the pending cane payments of the farmers.
He, however, felt that more exports should be allowed considering surplus output.
"The industry feels the government should examine allowing sugar exports of another 1 million tonne in the next 15 days. This will clear cane arrears which are threatening to cross Rs 10,000 crore mark by April," he said in a statement.
Verma said it would be a daunting task for the mill owners to clear the arrears unless further cash flow is generated.
The cane arrears stood at over Rs 8,409 crore till February of this marketing year, according to the government data.
Sugar output is estimated to be 26 million tonne in the 2011-12 marketing year higher than the annual domestic demand of 22 million tonne. The country had exported 2.6 million tonne in the 2010-11 marketing year.
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