Govt to continue Rs 3,300 per tonne raw sugar exports subsidy for April-May 2014

The Government has reviewed the raw sugar subsidy amount and decided to continue with the export subsidy of Rs 3,300 per tonne on its shipments for the period of April-May 2014. In February, the Cabinet Committee on Economic Affairs (CCEA) had approved an incentive for export of four million tonnes of raw sugar for two years to help the cash-starved sugar industry to pay arrears to sugarcane farmers. The CCEA decided to review the subsidy amount after every two months depending on the rupee-dollar exchange rate. The government had fixed export subsidy at Rs 3,300 per tonne for the February-March 2014 period. As per the Indian Sugar Mills Association (ISMA), around 4,00,000 tonnes of sugar is likely to be exported during April- May 2014. In the first six months of the current marketing year (October-September), India exported around 1.45 million tonnes of sugar in both raw and refined form out of which around 3,50,000 tonnes of sugar was exported in March, the first month of this subsidy plan. The latest government’s move is likely to enhance the raw sugar exports in coming future. India, world's second biggest sugar producer and largest consumer, particularly produces more white sugar for domestic consumption as comparison to raw sugar. Meanwhile, the raw sugar segment is presenting a lot of exports opportunities for the country. Till April 15 of marketing year 15, the country’s sugar output declined 4 percent to 23.1 million tonnes from 24.15 million tonnes in the same period last year. Sugar production declined in Uttar Pradesh and Maharashtra, country’s top two producing states, while output in Karnataka was at a record level on the back of good rains.