Business Standard

Cabinet approves sugar export policy for clearing surplus stocks


ANI General News
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the sugar export policy for the clearance of surplus stocks during sugar season 2019-20.
"CCEA has given its approval for providing a lump sum export subsidy at Rs. 10,448 per Metric Tonne (MT) to sugar mills for the sugar season 2019-20," said a press release issued by the Central government.
The total estimated expenditure of about Rs 6,268 crore will be incurred for this purpose, added the release.
"The lump-sum export subsidy will be provided for expenses on marketing costs including handling, upgrading and other processing costs, costs of international and internal transport and freight charges on export of up to 60 Lakh Metric Tonne (LMT) of sugar limited to Maximum Admissible Export Quantity (MAEQ) allocated to sugar mills for the sugar season 2019-20," read the release.
The subsidy would be directly credited into farmers' account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to mill's account, Central government said.
"The subsidy shall be in conformity with the provisions of Article 9.1 (d) & (e) of Agreement on Agriculture (AoA) and thus WTO compatible," it added.
The press release further said: "In wake of surplus sugar production during sugar season 2017-18 (October -- September) and sugar season 2018-19, notwithstanding various measures taken by the Government, the ensuing sugar season 2019-20 is expected to commence with an opening stock of about 142 LMT and season end stock are expected to be about 162 LMT.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 28 2019 | 8:31 PM IST

Explore News