The union cabinet on Wednesday approved Rs 3,500 crore subsidy package for the export of around 60 lakh tonne of sugar in FY21. To understand the implications and what kind of impact it can have on Dhampur Sugars, Gaurav Goel, MD of the company spoke to CNBC-TV18.

On the subsidy package, Goel said, “What the government has done is extremely prudent. I think this was the need of the hour. India is going to produce 31-31.50 million tonne vis-à-vis on offtake of about 26 million tonne. So this 6 million tonne we really help the Indian sugar mills to take away their stock.”

“India has geared up to export this full 6 million tonne as the government has said. Even though the amount that has been paid up Rs 3,500 is slightly on the lower side, but I think it is fine. But overall it is a great program and I am very sure that Indian will export a full 6 million tonne over the next 10 months,” he added.

On exports from Dhampur Sugars he said, “What we are seeing generally is about one-fifth of what we produce will be for exports. We have sufficient stock to take care of our export quota.”

On sugar prices, he reasoned, “As soon as exports happen the pressure on local sales will surely come down."

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(Edited by : Abhishek Jha)

First Published:Dec 17, 2020 2:12 PM IST