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PM decides to lift the ceiling on sugar exports

PM decides to lift the ceiling on sugar exports
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First Published: Sun, Mar 25 2007. 01 50 PM IST
Updated: Sun, Mar 25 2007. 01 50 PM IST
PTI
New Delhi: In a bid to help farmers and sugar producers amid expectation of bumper production, the government has decided to give major incentives for exports while creating a buffer stock of 20 lakh tonnes of the price-sensitive commodity.
Considering a number of proposals, the Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh on 24 March decided to lift the ceiling on sugar exports under the Open General License (OGL) and provide subsidies to sugar mills for export.
The buffer stock of 20 lakh tonnes of sugar would be created for a maximum of two years, sources said.
Export subsidy at a flat rate of Rs1,350 per tonne would be given for the sugar mills in coastal areas and Rs1,450 per tonne for factories situated in northern states.
In addition, an incentive of Rs 440 per tonne would also be given for export of raw sugar, the sources said.
These decisions are expected to help manufacturers in clearing the dues of sugarcane farmers.
India, world’s second-largest sugar producer, is expected to witness a bumper output of over 250 lakh tonnes in 2006-07. The world’s largest consumer of the sweetener is likely to use 190 lakh tonnes and the surplus would be around 100 lakh tonnes, including 40 lakh tonnes of carryover stocks.
The internal transport, freight, marketing and handling charges for sugar export would be defrayed. The ocean freight disadvantage would also be factored into the payment, they added.
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First Published: Sun, Mar 25 2007. 01 50 PM IST