Decision on raw sugar export incentives soon: official

The government will take a decision soon on extending incentives for raw sugar exports, an official said Thursday.

"We will soon consider export incentive for raw sugar," Food Secretary Sudhir Kumar told a meeting of mill owners here organised by the Indian Sugar Mills Association (ISMA).

The government gave financial incentives of up to Rs.3,371 a tonne for raw sugar exports in the 2013-14 sugar season ended September.

Meanwhile, ISMA said in a release here that the country's sugar production rose by 47 percent to 4.2 million tonnes till Dec 15, leading to a fall in ex-factory prices. Production in the year-ago period stood at 2.9 million tonnes.

Compared to 426 mills which were crushing sugarcane on Dec 15, 2013, ISMA said 442 sugar mills have started their operations as on Dec 15 this year.

"Since ex-mill sugar prices are lower than last year but the sugarcane prices are higher, the cane price arrears which had crossed Rs.12,500 crore in March 2014, in the last sugar season may be higher unless the sugar prices improve," ISMA said.