SME Times News Bureau | 18 Apr, 2014
The government's
delay in fixing the export subsidy on raw sugar for the April-May period is
adversely affecting shipments contracted earlier, the Indian Sugar Mills
Association (ISMA) said Thursday.
The government had
announced a subsidy of Rs 3,300 per tonne on raw sugar exports on February 28
to help the cash-starved industry to clear cane arrears and improve their
financial situation. It also decided to review the subsidy amount, depending on
the rupee-dollar exchange rate.
According to ISMA,
1.45 million tonnes of sugar in both raw and refined form are estimated to have
been exported in the first six months of the current marketing year, which
started in October. Of this, 350,000 tonnes of sugar were exported last month,
the first month of the subsidy.
"However, government
is yet to announce the incentive for raw sugar production and exports for April
and May. The delay in announcement of incentive rate is adversely impacting the
physical shipments of sugar exports already contracted," ISMA said in a
statement.
As much as 400,000
tonnes of sugar are likely to be exported in April and May. Some shipments have
already been dispatched and are in transit.
ISMA said the market
expects the subsidy to be unchanged at Rs 3,300 per tonne.
The country's sugar
output declined 4 per cent to 23.1 million tonnes till April 15 of the 2013-14
marketing year from 24.15 million tonnes in the same period last year.
Production declined in
Maharashtra and Uttar Pradesh, the top two producing states, while output in
Karnataka was at a record high, following good rains.