India cuts subsidy on sugar exports by a third to ₹4 a kg
May 20, 2021
Decision comes in the wake of higher sugar prices in the global market The government on Thursday reduced incentives available on sugar exports by one-third to ₹4,000 per tonne in the current sugar season, but the move will have only a limited impact as sugar mills have either exported or contracts are signed for more than 95 per cent of 60 lakh tonnes quota decided by the government.
The government took the decision to reduce the export subsidy because of high sugar prices in the global market.
According to a notification signed by Sugar Secretary Subodh Kumar Singh, now on the mills will get only ₹4,000 – ₹2,400 for internal transport and freight charges and ₹1,600 for ocean freight – per tonne as “assistance on export of sugar” as against the earlier ₹6,000 per tonne. The notification will be applicable for export contracts signed on Thursday or alter, it said.