 "Govt may release sugar subsidy payment for last season in two weeks")
The Ministry of Food is set to release export subsidy payment for the crushing season 2013-14 in two weeks. This will clear the decks for raw sugar exports for the current season.
The government had announced a subsidy of Rs 3,300 a tonne to help mills export excess supply of sugar. However, thanks to sustained fall in sugar prices in the global markets, mills managed to execute only 0.75 million tonnes of export orders during 2013-14 crushing season .
At a time when mills are incurring losses to the tune of Rs 6-6.50 a kg of sugar production, resulting in piling up of cane arrears to farmers, even a small payment release would provide a big support to them.
An industry source who held interaction with the food ministry, said, “The government will release the subsidy amount in two weeks.”
Sources said the release of subsidy amount was held because of incomplete claims of some mills. But, the government held a considered view to release the amount to the tune of around Rs 247 crore. Of this, however, sugar mills in Maharashtra contribute Rs 136-138 crore. Non-release of payment so far, however, created a panic among sugar mills to consider new quantity of sugar exports.
The government had announced a subsidy of Rs 3,300 a tonne to help mills export excess supply of sugar. However, thanks to sustained fall in sugar prices in the global markets, mills managed to execute only 0.75 million tonnes of export orders during 2013-14 crushing season .
At a time when mills are incurring losses to the tune of Rs 6-6.50 a kg of sugar production, resulting in piling up of cane arrears to farmers, even a small payment release would provide a big support to them.
An industry source who held interaction with the food ministry, said, “The government will release the subsidy amount in two weeks.”
Sources said the release of subsidy amount was held because of incomplete claims of some mills. But, the government held a considered view to release the amount to the tune of around Rs 247 crore. Of this, however, sugar mills in Maharashtra contribute Rs 136-138 crore. Non-release of payment so far, however, created a panic among sugar mills to consider new quantity of sugar exports.
ALSO READ: India's sugar production up 14% in four months
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