Cabinet increases subsidy for sugar exports

NEW DELHI: The Cabinet approved a higher subsidy of Rs 4,000 a tonne for exports of raw sugar, a decision that could support local prices by reducing excess supplies as India stares at a glut in production.

The export incentive will be given for 1.4 million tonnes of raw sugar in the 2014-15 season, which began on October 1. The subsidy is given for specific periods and it was most recently Rs 3,371. "Even if we keep 6 million tonnes for three months' requirement, we have enough stock and hence can export," the Minister had said.

Indian Sugar Mills Association welcomed the move. "Sugar mills will need to gear up to produce the 1.4 million tonnes of raw sugar in the balance 1-1.5 months of crushing period remaining. At the current global and domestic prices, raw sugar exports from India is just about viable with the incentives," it said in a news release.

Source : dailyshippingtimes.com