Govt may extend sugar export subsidies

The government may consider extending export subsidies given to the sugar industry by another year as the country is on its way to another record production of over 30 million tonne in the 2007-08 season. "Let us see the total export in the sugar season. It looks like we have already crossed 1.5 million tonne. If this trend continues, we will definitely give serious thought to a one-year extension," Agriculture and Food Minister Sharad Pawar told reporters here. He was speaking on the sidelines of the 73rd annual general meeting of Indian Sugar Mills' Association (ISMA). The export sops announced by the government early this year is valid till April 2008. The government is defraying internal transport, handling and marketing charges and ocean freight on sugar exports at Rs 1,350 per tonne for mills located in coastal area and Rs 1,450 for non-coastal states. Ethanol-blending can go beyond 10%: Pawar Pawar said the threshold limit for blending ethanol with petrol can go beyond 10% provided the sugar industry can supply the required quantity for a long period.

"With increased confidence on the capability of the sugar industry to meet the demand for ethanol over a longer period, the country could move forward to increase the blending percentage further from 10%,"  Pawar said. Pawar said apprehensions of the petroleum industry regarding ethanol supply during the lean sugarcane season needs to be addressed. "The main apprehensions of the oil industry that the sugar industry is reluctant to supply ethanol in the years of shortage of sugarcane needs to be addressed and successfully tackled for the ethanol-blending programme to take off in India," Pawar said. The government has made blending of 5% ethanol with petrol mandatory from October 2007 throughout the country, except Jammu and Kashmir and some hilly states. It has also been decided to increase the blending to 10% from October next year. "The 5% blend will give an assured market for 600 million litres of ethanol and 10% will require 1,200 million litres," Pawar said.