Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Cabinet extends export subsidy on raw sugar
BackBack

Cabinet extends export subsidy on raw sugar

Export incentive is for the production season 2014-15 and will help sugar mills clear dues to cane growers

Local mills are expected to produce 26 mt of sugar this year against a domestic demand of 24.7-24.8 mt. Photo: BloombergPremium
Local mills are expected to produce 26 mt of sugar this year against a domestic demand of 24.7-24.8 mt. Photo: Bloomberg

New Delhi: In a relief to sugar mills resorting to distress sales, the government on Thursday approved an export subsidy on raw sugar for the current production season. Sugar mills will be allowed to export 1.4 million tonnes (mt) of raw sugar and can avail of a subsidy of 4,000 per tonne, the Cabinet Committee on Economic Affairs (CCEA) said in a statement.

The export incentive is for the production season 2014-15 (October to September) and will help sugar mills clear dues to cane growers, the CCEA, headed by Prime Minister Narendra Modi, said. In February 2014, the government had announced an export subsidy of 3,300 per tonne for 4 mt. But only 750,000 tonnes were actually exported under the scheme.

The Indian Sugar Mills Association (ISMA) welcomed the government’s decision. “At the current global and domestic prices, raw sugar exports from India is just about viable with the incentives," said Abinash Verma, director general of ISMA.

“As per our estimates, there is surplus sugar of around 2.5 mt and therefore the industry will require incentives for another 1-1.5 mt. This is the only way for the industry to pay cane price even at the FRP (fair and remunerative price) level this season; otherwise cane price arrears (to growers) which are at 12,300 crore will very soon cross 13,000 crore, (the peak) recorded in last season," he said.

According to ISMA, the industry’s debt burden has more than tripled from 11,443 crore in 2007-08 to 36,601 crore in 2012-13. Local mills are expected to produce 26 mt of sugar this year against a domestic demand of 24.7-24.8 mt.

In another decision, CCEA approved the widening of four highways: the six-laning of the 145km Chakeri-Allahabad section of National Highway (NH) 2 in Uttar Pradesh, worth 1,999.85 crore; 137km Baleshwar-Chandikhole section of NH5 in Odisha worth 2,296.82 crore; and 72.4km Handia-Varanasi section of NH2 in Uttar Pradesh worth 2,378.59 crore. CCEA also approved the four- and six-laning of the 127km Raipur-Bilaspur section of NH130 in Chhattisgarh worth 1,963.88 crore.

Ragini Verma contributed to the story.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Sayantan Bera
Sayantan is a National Writer with the Long Story team at Mint, covering food and nutrition, agriculture, and rural economy. His reportage is based on granular ground reports, tying it with broader macroeconomic realities, with a sharp focus on people and livelihoods. Beyond rural issues, Sayantan has written deep dives on topics spanning healthcare, gender, education, and science.
Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 20 Feb 2015, 12:55 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App