Comments
The government on Thursday reduced incentives available on sugar exports by one-third to ₹4,000 per tonne in the current sugar season, but the move will have only a limited impact as sugar mills have either exported or contracts are signed for more than 95 per cent of 60 lakh tonnes quota decided by the government.
The government took the decision to reduce the export subsidy because of high sugar prices in the global market.
According to a notification signed by Sugar Secretary Subodh Kumar Singh, now on the mills will get only ₹4,000 – ₹2,400 for internal transport and freight charges and ₹1,600 for ocean freight – per tonne as “assistance on export of sugar” as against the earlier ₹6,000 per tonne. The notification will be applicable for export contracts signed on Thursday or alter, it said.
Quoting market reports, an Indian Sugar Mills Association (ISMA) statement last week said the sugar companies have already contracted or physically exported about 57 lakh tonnes of sugar.
“All contracts signed so far will get ₹6 per kg export subsidy, but the new contracts will fetch a support of only ₹4 per kg,” Abinash Verma, ISMA Director-General, told BusinessLine.
Sources, however, said the decision will have only a limited impact on the mills as much of the 60 lakh tonne maximum admissible export quota has already contracted. The government’s savings could be as little as ₹60 crore, they said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.