Approval of Sugar Export Policy for Evacuation of Surplus Stocks (Download PDF)

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The Cabinet Committee on economic Affairs (CCEA) has approved sugar export policy for evacuation of surplus stocks during sugar season 2019 - 20. The lump sum export subsidy will be subsidy@Rs. 10,448 per Metric Tonne (MT) to sugar mills for the sugar season 2019 - 20.

Image shows of Furthering Income Support to cane Farmers

Image Shows of Furthering Income Support to Cane Farmers

Image shows of Furthering Income Support to cane Farmers

Export Subsidy and the Background

  • A downward pressure will be created by the surplus stock of 162 Lakh Metric Tonnes of sugar. This in turn will affect the liquidity of the sugar mills resulting in the accumulation of the sugar mills.

  • The Government of India has also recently created buffer stock of 40 Lakh Metric Tonnes of sugar for one year from 1st August, 2019.

  • Despite the buffer stock of 40 LMT till 31stJuly, 2020 along with the diversion of sugar by way of production of ethanol from B-heavy molasses/cane juice during Sugar Season 2019 - 20, there shall be about 60 LMT of excess sugar stock that will need evacuation through export.

  • It will be provided for expenses on marketing costs including handling, upgrading and other processing costs, international and internal transport costs and freight charges.

  • It will be directly credited into farmers’ account on behalf of mills against cane price dues and subsequent balance, if any, will be credited to mill’s account. It shall be in conformity with the provisions of Article 9.1 (d) & (e) of Agreement on Agriculture (AoA) and thus World Trade Organisation (WTO) compatible.

    Millions of farmers are expected to get benefitted in Maharashtra, Uttar Pradesh, Haryana and Karnataka as well as other states.

- Published/Last Modified on: September 20, 2019

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