Government to provide financial incentives for sugar export

The central government Wednesday said it would provide financial incentives to push export of sugar.

The government will provide Rs.3,333 per tonne on exports of raw sugar. The decision will be reviewed by the cabinet after a couple of months.

Industry body ISMA welcomed the government decision to assist the sugar industry in disposing off the 40 lakh tonnes of surplus sugar out of the country over the next two sugar seasons.

"Though not much time is left for producing raw sugar in the balance crushing period during this season, we expect that this will give some of the much required liquidity to the sugar mills, which in turn, will help clear off a part of the cane price arrears of the farmers," ISMA said in a statement.

Arrears to farmers has crossed Rs.10,000 crore and is threatening to touch Rs.15,000 crore in the next couple of months.

"Market sentiments should now improve and the domestic sugar prices will stop falling, thereby helping sugar mills to reduce some of their losses. Since the window to produce raw sugar is very short, we would pray for an early notification of the scheme and procedure," it said.

"We would also look forward to some positive decisions on better implementation of ethanol blending with petrol programme by the oil marketing companies, which is equally important for the sugar industry and the cane farmers. It also benefits the whole country by way of reducing foreign exchange outgo and providing green bio-fuel to consumers," ISMA added.