Home Economy Centre yet to decide on export subsidy for sugar

Centre yet to decide on export subsidy for sugar

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Last 12 months’s dues to mills have nonetheless not been cleared.

The sugar crushing season is now nicely underneath means, however mill house owners are beginning to get antsy concerning the authorities’s delay in deciding whether or not or not export and buffer inventory subsidy schemes will likely be prolonged this 12 months.

Food Ministry officers say the coverage continues to be into account, and admit that greater than ₹5,000 crore price of cost to mills from final 12 months’s export subsidy scheme continues to be pending because of inadequate budgetary allocations. Although the Ministry has requested a supplementary grant, the uncertainty hanging over the winter session of Parliament implies that no date has been set for the federal government to pay its dues.

“We have only been partially paid for last year. And now, the proposals for extending the policy to this year are still pending with the government although crushing has started. We are not sure how long we will have to wait,” stated a significant mill proprietor, who didn’t want to be named. Without vital exports, mill house owners might be caught with enormous surpluses, lowering their potential to clear pending funds to cane farmers.

The sugar season (SS) begins in October, and greater than 14 lakh tonnes have been produced as of November 15, based on the Indian Sugar Mills Association (ISMA). At the identical time final 12 months, solely 4.85 lakh tonnes had been produced. 274 mills have began crushing operations compared to simply 127 final 12 months. The main distinction comes from Maharashtra and Karnataka which have seen a big improve in cane acreage because of a very good monsoon, compared to the drought circumstances final 12 months, when crushing solely began on the finish of November.

Need for exports

All this augurs nicely for elevated manufacturing, far past home demand. “With an estimated sugar production of 310 lakh tonnes, India will have another surplus year and needs to continue to export about 60-70 lakh tonnes of the surplus sugar out of the country during 2020-21 SS,” stated an ISMA assertion. “Decisions regarding export policy along with export subsidy for the sugar year 2020-21 and creation of buffer stock along with buffer subsidy are still awaited from the government. During the last season 2019-20, about 2 lakh tonnes of sugar had already been shipped out for exports on the corresponding date.”

In his first press convention as Food Minister on October 30, Piyush Goyal had stated that sugar export subsidies weren’t into account as worldwide costs are steady, including that authorities would re-examine the proposal if wanted. On Tuesday, a senior Food Ministry official coping with sugar insurance policies informed The Hindu that the subsidy scheme is again on the desk. “The government is still considering the proposal, but there is no policy decision yet. If the subsidy is given, we understand it will have to come during this season,” stated the official.

The official added that the delays relating to cost underneath final 12 months’s scheme had been because of a budgetary allocation for the scheme of simply ₹600 crore, whereas receipts have been acquired to the tune of about ₹6,000 crore. “We have requested for a supplementary, but it is not clear when Parliament will meet again. Of course, we have to pay the mills, but we cannot say when. As and when we get the money, we will pay,” stated the official.



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