Levy exemption to aid sugar exports

Exempting sugar exports from a mandatory levy for another six months would help mills maximise export, said an industry official.

"It is a right step to encourage millers to maximise export," he said. Mills can now also expect higher free sale quota for domestic sale. Sugar released for export would be treated as advance non-levy (free sale release) and would be adjusted after 12 months, instead of six months.

The official pegged additional export of at least 200,000 tonnes due to the extended non-cash sop to sugar factories. Indian millers had exported 900,000 tonnes till mid-June.

Industry expects at least 1.2 million tonnes export till September 30. Indian sugar year runs from October-September. Tuesday, India exempted sugar exports from mandatory levy for six months.

The validity period has been extended from July 3 to January 2 in the Advance Authorisation Scheme.

Under the Open General License, the extended period is from July 23 to January 22. Millers can continue to avail the exemption under both the schemes. Earlier, the sop was valid for the period January 3 to July 2 under AAS and from January 23 to July 22 under OGL.

However, the sop will not be applicable for export under preferential quota. India's October-September sugar output is projected at 28 million tonnes, almost 45 per cent higher on year. The year-ending stocks have been pegged at about 13 million tonnes compared with 4.3 million tonnes last year. Sugar prices have been consistently falling since the beginning of the season in October due to higher output projections.