The Indian government has permitted export of an additional 3,675 tonnes of raw/refined sugar under tariff-rate quota to the United Kingdom. M Manickam, CMD, Sakthi Sugars NSE 0.00 % on what it means for the sugar industry.
How are you looking at this news of sugar export to the UK? What would it mean for the sector?
It is more a sentimental thing because the amount is only 3,000 tonnes and India is looking at exporting 6 million tonnes. It is going duty-free because India has a quota of about 40-50,000 tonnes a year and the UK quota is 10,000 tonnes. That has now been increased to 13,000 tonnes this year. It is a small event in terms of quantity. But it is a good event and we get some entry into the UK duty-free. That is about all.
But do you think that we could see improved realisations even if it is fairly meagre?
Not really. I mean this is going to be realised by APEDA. It is not going to really come to the market. The Government of India will be taking the profits and possibly using that to subsidise export. So it will probably help the government a little bit but the sentiment is good as some amount of sugar is going into a duty-free regime.