Mills await clarity on incentives for export of raw sugar

Sep 04 2014, 01:54 IST
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SummarySugar mills in Maharashtra are awaiting clarity from the Narendra Modi...

Sugar mills in Maharashtra are awaiting clarity from the Narendra Modi government on the incentives to be given on exports of raw sugar for the sugar season of 2014-15.

The earlier government had notified an incentive of R3,300 per tonne for production of raw sugar for exports in a bid to bring down the stockpile by promoting exports. As a result, around 41 sugar mills in Maharashtra exported around 6.61 lakh tons for the year 2013-14.

Traders who usually book orders ahead of the start of the crushing season, this time are awaiting clarity from the Centre, top officials of the Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) said.

Indian mills traditionally produce white sugar and produce raw sugar only as per market demand.

Sanjeev Babar, MD, MSCSSF, said the industry is hopeful of continuation of the raw sugar policy. A delegation led by federation chairman Vijaysinh Mohite Patil had recently met Union food minister Ram Vilas Paswan with a representation seeking continuation of the incentives on raw sugar exports.

Abhinash Verma, director general, Indian Sugar Mills Association, said the previous government said that the scheme shall be applicable for the current sugar season of 2013-14 and the next season of 2014-15. However, it also said the scheme shall be reviewed at the start of the new sugar season of 2014-15, which means the scheme won’t work, he added.

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