Sugar mills have been encouraged to take benefit of solid global sugar prices and arrange raw sugar exports in advance for the next season (October-September), according to the report. This suggests that the government is unlikely to prolong the export subsidy beginning with the next season, as domestic mills would find it simpler to sell sugar overseas in light of firm world prices. Therefore, In this article, we shall discuss the latest news of Govt Announced subsidy on sugar export this season.
Govt announced subsidy on sugar export this season
- According to a senior food ministry source, the Centre has so far approved Rs 1,800 crore in subsidies to sugar mills for meeting a mandated export of 6 million tonnes of the sweetener in the 2020-21 season, which ends this month.
- During the previous three seasons, the government had to give export subsidies to decrease surplus stockpiles and help cash-strapped sugar mills complete cane payments to producers on time. It provided subsidies for the export of a set amount of sugar.
- According to the source, 5,000 crores in subsidy applications have been processed so far for the 2019-20 season. The remaining sum of Rs. 1,200 crore would be paid to mills over the following two months.
- In the last two years, India, the world’s second-largest sugar producer, had to give export subsidies in order to reduce surplus stockpiles and assist cash-strapped sugar mills clear cane payments to producers.
- “Sugar mills having Import Export Code that would export sugar and convert sugar to ethanol would also get an incentive in the form of an increased monthly domestic quota for sale in the domestic market,” the food ministry said in a statement.
Learn about – How To Export Honey Jaggery And Sugar Products From India
Impact of Strong Worldwide Trends on Exporters having IEC Code Registration
- According to the official, mills already have delivered the whole capacity of 6 million tonnes set for the 2020-21 term. They have also traded sugar without subsidies, capitalizing on strong worldwide trends.
- This has prompted mills to clear 8,300 crores in cane price dues to peasants so far this season, against an amount dues of 91,000 crores, he said, adding that the remaining amount will be settled by mills as well.
- Furthermore, According to the government, some sugar mills have also inked forward contracts for new season shipments. Global sugar prices have risen significantly in the last month, and there is a high demand for Indian raw sugar, according to the report.
Thus, anyone can apply for IEC Code Online Registration to start their export business and take the benefit of the opportunity.
Moreover, If you need any other guidance concerning the IEC Code, please feel free to contact our business advisors at 8881-069-069.
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