CCEA may review sugar subsidy scheme next week

New Delhi : The Government is expected to take a decision next week on continuing an incentive scheme for limiting raw sugar production after the current marketing year through September 30, sources said .

The food ministry has already circulated a note for the Cabinet Committee On Economic Affairs (CCEA) to "take a view regarding the continuity of the incentive scheme beyond the end of the current sugar season".

Although a notification after the CCEA decision had provided that "the incentive shall be for a quantitative limit not exceeding 40 lakh metric tonne raw sugar produced and exported in 2013-14 or 2014-15 sugar season", it had also said the "incentive shall be reviewed before the next sugar season".

The incentive is calculated on the basis of the average exchange rate of the rupee vis-a-vis the dollar as well as average international future prices of raw sugar in the seven days immediately preceding each bi-monthly period. The date of the shipment is taken as the basis for determining the incentive.

The country has exported around 7,00,000 tonnes of raw sugar so far this year under the scheme. The country had exported just 3,40,000 tonne of sugar, both raw and refined, last year.

Source : dailyshippingtimes.com