New Delhi: The Government is understood to have decided to give major incentives for sugar exports while creating a buffer stock of 20 lakh tonnes of the price-sensitive commodity to help farmers and sugar producers amid expectation of bumper production.
After considering a number of proposals, the Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh on Saturday night decided to lift the ceiling on sugar exports, provide subsidies to sugar mills for export.
The buffer stock of 20 lakh tonnes of sugar would be created for a maximum of two years, sources said, but no official communication could be obtained on the decisions.
Export subsidy at the rate of Rs 1,350 per tonne would be given for the sugar mills in coastal areas and Rs 1,450 per tonne for other areas. An incentive of Rs 440 per tonne would also be given for export of raw sugar, the sources said.
These decisions are expected to not only buoy exporters and sugar mills, but also help manufacturers to clear the dues of sugarcane farmers.
India, world's second-largest sugar producer, is expected to witness a bumper production of over 250 lakh tonnes in 2006-07 season ending September 2007.
The world's largest consumer of the sweetener is likely to use 190 lakh tonnes and the surplus would be around 100 lakh tonnes, including 40 lakh tonnes of carryover stocks.
The internal transport, freight, marketing and handling charges would be defrayed. The ocean freight disadvantage for export of sugar would also be factored into the payment.
These incentives would be available for a maximum of 30 lakh tonnes under the Open General Licence for two seasons, including 2006-07, they added.
(With inputs from PTI)
Comments
0 comment