Union Government decided to continue export subsidy of 3300 rupees per tonne on raw sugar export
Union Government has decided to continue export subsidy of 3300 rupees/tonne on raw sugar shipments for months of April and May 2014.
Union Government of India on 20 April 2014 decided to continue the export subsidy of 3300 rupees per tonne on raw sugar shipments for April - May 2014 period.
The Cabinet Committee on Economic Affairs (CCEA) in February 2014 had approved an incentive for export of four million tonnes of raw sugar for two years. The incentive would help the cash starved industry to pay arrears to sugarcane farmers.
As a result, for February – March 2014 period, the subsidy of 3300 rupees per tonne was fixed for the export of raw sugar. Besides, the CCEA had also decided to review the subsidy amount after every two months depending upon the rupee-dollar exchange rates.
Latest data released by Indian Sugar Mills Association (ISMA) shows that an estimated 1.45 million tonnes of sugar in both raw and refined form have been exported in the first six months of the current marketing year that started in October 2013. Of this, 350000 tonnes of sugar were exported in March 2014, the first month of the subsidy.
The subsidy of 3300 crore rupees would help in catapulting the sugar output. The sugar output in the country declined by 4% to 23.1 million tonnes in October - April period of the 2013-14 marketing year from 24.15 million tonnes in October - April period of 2012-13.
Production declined in Maharashtra and Uttar Pradesh, the top two producing states, while output in Karnataka was at a record following good rain.
About Indian Sugar Mills Association (ISMA)
Indian Sugar Mills Association (ISMA) is the oldest industrial Association in the country and was established in 1932, when tariff protection was granted to the industry. ISMA is an association that is recognised by both the Central and State Governments as the central apex organisation to voice the cause of the sugar industry. Sugar mills in the private sector as well as the public sector are eligible to become members of ISMA. Its total strength of membership as on date stands at 260.