JOIN USThe Centre on Thursday extended the export subsidy scheme for raw sugar to 14 lakh tonnes of the sweetener for the current season. The decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
The CCEA approved a fixed uniform rate of Rs 4,000 per tonne for the 2014-15 sugar season. The export subsidy is expected to help the cash-starved sugar industry clear sugarcane arrears to farmers. The subsidy scheme ended in September 2014.
Without any government incentive, Indian sugar is uncompetitive in world markets. As the quantity of sugar is fixed, settlement of claims will be prioritised on the basis of the date of export/deemed export as certified by concerned Customs authorities. For mills producing alcohol, the incentive would be available if they offer to supply ethanol to oil marketing companies up to 25 per cent of their annual production level of alcohol.