Sugar mill owners request to export 1 million tons of sugar, government asks for price guarantee

Sugar mill owners have sought permission from the government to export 1 million tonnes of sugar and have also provided the Ministry of Production with data on the current reserves in the country. The sugar industry maintains that the country currently has ample reserves of sugar and exporting the excess sugar can earn more than $1 billion in foreign exchange, which will be beneficial for the country’s economy. The industry has also warned that if permission is not granted for export, sugar mills may suffer financial losses.

However, the government is being very cautious in this matter and the reason for this is the bitter experience of last year. Sources in the Ministry of Production recalled that last year, when permission was granted to export 700,000 tonnes of sugar, the prices of sugar in the country had increased from Rs 120 per kg to Rs 200. This increase proved to be very painful for the common man and the government faced a lot of criticism.

Keeping this experience in mind, the government has now sought a clear guarantee from the sugar mill owners that despite the export, the prices of sugar in the country will not increase. Sources have clearly stated that until a concrete assurance is received, no export will be allowed.

This matter is actually a conflict of two different interests. On one side are the sugar mill owners who want to sell their goods and are arguing to earn foreign exchange, on the other side is the government which knows that if sugar becomes expensive in the country, it will face public anger. In such a situation, the government's stance that first give a guarantee and then permission will be granted seems to be a sensible decision, but the real question is whether the sugar mill owners are in a position to give such a guarantee or not.