The Government has decided to continue with the export subsidy of Rs 3,300 per tonne on raw sugar shipments for the April-May period.

During February-end, the Cabinet Committee on Economic Affairs had approved an incentive for export of four million tones of raw sugar for two years in order to help the cash-starved industry to pay arrears to sugarcane farmers.

The export subsidy was fixed at Rs 3,300 per tonne for the February-March period. CCEA had also decided to review the subsidy amount after every two months depending on the rupee-dollar exchange rate.

“The Food Ministry reviewed the subsidy amount last week and decided to continue with the existing rate of Rs 3,300 per tonne for April—May as well. A notification will be issued soon,” a government source said.

As much as 4,00,000 tonnes of sugar are likely to be exported in April and May. Some shipments have already been dispatched and are in transit, according to the industry body, Indian Sugar Mills Association (ISMA).

As per ISMA’s latest data, 1.45 million tonnes of sugar in both raw and refined form are estimated to have been exported in the first six months of the current marketing year, which started in October.

Of this, 3,50,000 tonnes of sugar were exported last month, the first month of the subsidy.

The country’s sugar output declined 4 per cent to 23.1 million tonnes till April 15 of the 2013—14 marketing year from 24.15 million tonnes in the same period last year.

Production declined in Maharashtra and Uttar Pradesh, the top two producing states, while output in Karnataka was at a record following good rains.

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