Include sugar in the bilateral trade agreement : ISMA
There are indications of surplus production of sugar in the country in the years 2018-19 and 2019-20. If the domestic production of sugar increases, it might result in the decline of the sugar prices locally. This may also create problems of the pending bills for sugar cane, claimed ISMA and expressed the need to increase sugar export.
“Currently agriculture export policy is being formed. For that, the ministry of commerce has sought opinions about the issue of how to increase the export of sugar. In response to that the ISMA has asked to include sugar in the bilateral trade agreement between India and Bangladesh,” informed the sources.
The refineries in Bangladesh prefer sugar from India. But it is impossible for us to compete with the cheap sugar from Brazil, mentioned ISMA.
There should be appropriate policy for sugar export. It is expected that sugar export will be benefited by the free trade agreement between India and Sri Lanka. India’s trade with China and Indonesia is facing adverse conditions. China and Indonesia are one of the biggest buyers of sugar in the world.
On this background, ‘ISMA’ expressed the need to implement transaction policies which will be suitable for sugar export to these countries. Meanwhile, minister of commerce in the Central Government, Suresh Prabhu has already stated that the exports are being encouraged so that agricultural produce of the Indian farmers reaches the international markets.
Ten thousand tonnes of sugar will be exported to the European countries. The Central Government has approved the export of ten thousand tonnes of sugar in this season. The Directorate General of Foreign Trade has issued the notification regarding this. Export duty of 20% is applicable for sugar. However, It is clarified that, sugar will be exported to European countries under a specific quota and duty will not applicable for it.
Meanwhile, it has been estimated that the sugar production in the country will be 24.5-25.0 million tons this year (2017-18). In the last year’s season the sugar production was 20.17 million tonnes.
Reference- Agrowon October 17