Maha CM Eknath Shinde requests PM Modi to continue with the quota system for sugar export

The Maharashtra state chief minister Eknath Shinde wrote a letter to Prime Minister Narendra Modi urging that in the case of sugar, the current open export policy should be continued. Sugar mills in Maharashtra are against the quota system of sugar export. CM Eknath Shinde has said that this will limit the factories.

In this regard, Eknath Shinde requested Prime Minister Narendra Modi to intervene and take suitable decision to the Ministry of Commerce, Consumer Protection and Food and Public Works. In case of sugar export in the year 2021-22. Central government by adopting an open policy, India has become a major exporter of sugar in the world. Stating that this as provided financial stability to the sugar mills and increased foreign exchange, it is learned that the quota system will be implemented for sugar exports from this year. However, Eknath Shinde has said in this letter that this method is a loss for our factory owners.

The fall season in the country ends by March.The season in Brazil starts on April 1 and other sugar exporting countries benefit by creating competition. The government doest not have to provide any financial export for sugar export. The quota system also allows factories that are not interested in exporting to transfer their quota to others to make money without actually exporting. A quota system will create unnecessary administrative hurdles and lack transparency. Also Eknath Shinde has said in his letter to PM Modi that there will be no opportunity for recovery business.

Meanwhile, with crude oil prices high at present, it is beneficial for Brazil to focus on ethanol production rather than sugar. In the future, however as crude oil prices are likely to fall, Brazil is also likely to focus on sugar production rather than ethanol. Due to this India may lose. The State Cooperative Sugar Factory Production Federation as well as the National Cooperative Sugar Factory Federation as well as the private sector factories in Maharashtra all demand to implement the sugar export policy. Therefore, Eknath Shinde has requested in a letter sent to Prime Minister that the relevant ministry should be instructed to take proper decision in this matter.