Exports get levy exemption

In order to boost sugar exports, the government has exempted the quantity that a mill exports from levy obligation.

In addition, the quantity of sugar released for export would be treated as advance non-levy (free sale) releases to be adjusted in the free sale stocks of sugar factories after 12 months. This will not impact the availability of sugar that mills can sell in the domestic market. According to the Sugarcane Control Order, mills need to sell 10 per cent of the sugar they produce to government as levy sugar, at a concessional rate.

"We want to facilitate exports that are not picking up owing to low international prices", said a Food Ministry official. International sugar prices had slipped from $470 a tonne in July last year (when government banned exports) to $335 a tonne, rendering exports unattractive.

However, the above incentives will not apply to exports under preferential quota. Further, the incentives would be given on sugar exports between January 3, 2007 and July 2, 2007 under advance licence scheme and between January 23 and July 22 for exports under open general licence.