Govt mulls over sugar export subsidy

Govt mulls over sugar export subsidy
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First Published: Sat, Mar 03 2007. 01 45 AM IST
Updated: Sat, Mar 03 2007. 01 45 AM IST
New Delhi: India’s sugar output in the season ending September 2007 is expected to be around 240-250 lakh tonnes, Minister of State for Agriculture Akhilesh Prasad Singh said 2 March.
“Sugar output will touch 24 to 25 million tonnes,” he told reporters. “Prices of other essential commodities may be a little high but sugar prices are falling.”
Sugar prices went up in 2006 after production fell to 19.4 million tonnes, but have since stabilised. The government is now considering giving an export subsidy for sugar to mill owners in the wake of fears of glut in the domestic market.“The matter (of sugar export subsidy) is still under consideration of the government,” Singh said.
Global sugar prices, which stood at over 450 dollars a tonne when its exports were banned in July 2006 to check rising prices in the local market, have since declined to around 335 dollars per tonne.
Last month, the government decided to exempt sugar meant for export from levies.
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First Published: Sat, Mar 03 2007. 01 45 AM IST