Co-operative Sugar mills in Maharashtra have written to Finance Minister seeking his intervention for the release of collateral Sugar held with the public sector banks (PSBs).
The move is aimed to boost exports from the state which were stuck due to the difference in subsidy payment.
Owing to lower credit availability from banks, Sugar exports from Maharashtra were under tremendous pressure. Sugar mills in the state have shipped only 184,000 tonnes of the commodity so far this season, out of the total allocated quantity of 1.5 million tonnes under the Minimum Indicative Export Quota (MIEQ).
So far, Sugar pledged with banks was regarded as dead inventory. PSBs' release of additional quantity of Sugar would certainly help boost its exports from Maharashtra.
Indian mills expect the sudden spike in global Sugar prices to persist due to drought in Brazil, one of the largest producers. Hence, India would have a fair chance to achieve 5 million tonnes of Sugar export quota this year.