BackGovt notifies incentive for raw sugar exports
The government notifies an incentive of `3,300 per tonne for production of raw sugar for exports
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Mumbai: The Indian government late on Monday notified an incentive of ₹ 3,300 per tonne for production of raw sugar for exports as the world’s second biggest producer of the sweetener tries to bring down its stockpile by promoting exports.
A cabinet committee on economic affairs (CCEA) last month approved the proposal and mills had been awaiting the notification.
Indian mills traditionally produce white sugar, but a global glut has made exports difficult. Exports of raws from India will eat into the share of top suppliers Brazil and Thailand.
The government will provide incentive for export of 4 million tonnes of raw sugar produced in the 2013-14 and 2014-15 sugar marketing years, that run from October to September, the notification said.
The incentive of ₹ 3,300 will be applicable for exports in February and March. From April, the incentive will be recalculated after every two months depending on the rupee-dollar exchange rate, it said.
Mills need to pay incentives to make cane payments to farmers, it added. Reuters
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