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Trading firm will subsidize sugar exports

Trading firm will subsidize sugar exports
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First Published: Fri, May 18 2007. 01 00 AM IST
Updated: Fri, May 18 2007. 01 00 AM IST
Indian Sugar Exim Corp. (Isec), an industry-funded trading company, plans to pay exporters a subsidy of $15 (Rs615) a tonne to boost overseas sales amid a record harvest. It plans to export five lakh tonnes of sugar by September, S.L. Jain, a committee member said. “Shipments must go through the trading firm for mills to claim the incentive,” he said.
The Centre pays mills around Rs1,450 a tonne in freight to make exports competitive against supply from producers in Brazil and Thailand. Still, companies have exported half the 1.5 million tonnes cleared by the government for shipment because of a decline in world sugar prices.
“Mills are faced with a crisis and we will use the funds that Isec has generated from trading sugar in the past to push exports,” said Jain, who’s also the director general of Indian Sugar Mills Association. “We are not going to pass on the extra incentives to buyers.”
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First Published: Fri, May 18 2007. 01 00 AM IST
More Topics: Money Matters | Commodities |