Sugar export sops must end, says FM

The government must end providing assistance to sugar exports as enough sugar has been exported out of the country, Finance Minister P Chidambaram told reporters on the sidelines of a function in Mumbai on Friday.

“In my view, the subvention given for sugar exports must now come to an end. Enough sugar has been exported,” Chidambaram told the media after inaugurating currency futures trading on the National Stock Exchange.

The freight assistance of Rs 1,350 a tonne for sugar mills in coastal areas and Rs 1,450 a tonne for those situated in the interiors is scheduled to end on September 30. However, Chidambaram said he has spoken to the agriculture and food ministry to end the benefit sooner.

The assistance was declared to provide support to the industry, which was reeling under pressure as the record output induced a 35-40 per cent crash in prices and caused a huge loss to the industry.

Shares of sugar companies however, saw a rally on the Bombay Stock Exchange today.

Leading exporter Sakthi Sugars gained 5 per cent to close at Rs 108.15, while Renuka Sugars rose 2.49 per cent to Rs 117.25.