INDIA: ISMA sees southern mills benefiting most from imports
Published: 04/21/2017, 10:27:01 AM
Mills in southern India are expected to benefit the most from the upcoming import of 500,000 tonnes of raw sugar. Industry executives said that since the sugar deficit is more pronounced in the southern region, it should benefit from allocation of the biggest quota of imported sugar, according to the Economic Times of India.
The central government has allowed import of raw sugar till June 30 to make up for the fall in sugar production in Maharashtra and Karnataka.
"The government has correctly assessed the situation and given benefit to mills in the south and west," said T Sarita Reddy, president, Indian Sugar Mills Association (ISMA).
The Centre has allocated 300,000 tonnes to the south zone comprising Tamil Nadu, Karnataka and Andhra Pradesh; 150,000 tonnes to the west zone consisting of Maharashtra; and 50,000 tonnes to the east zone which includes West Bengal and Odisha.
"A lot of mills have come forward to participate in imports," said Reddy. Due to bumper production in Uttar Pradesh, north India is not expected to face any supply crunch. Since sugar production in Maharashtra, Karnataka, Tamil Nadu and other states in southern India was lower than last year, this region is expected to face supply shortages by the end of the 2016/17 sugar year ending September 30.