The exports of sugar is estimated at 26.54 lakh tonnes (LT) for the current season ending this month which is a meager rise of 3.48 LT compared to last season. The raw sugar exports is pegged at 11.5 LT and shipments of white sugar at 10.5 LT, according to Indian Sugar Mills Association (ISMA). Another 4.5 LT were shipped under the Advance Authorisation Scheme, wherein the white sugar is exported against imports of raw sugar made earlier at 0% Customs duty. The top three export destinations for Indian sugar were Iran, Sudan and Somalia.
The Government in month of February had announced an export subsidy of Rs 3,300 a tonne on raw sugar for 40 LT to be shipped between February 2014 and September 2015. The scheme was to enable the cash-starved industry to pay sugarcane arrears to farmers amounting to over Rs 8,000 crore as of August 31.
However, the scheme, likely to have a new formula fixed by the Cabinet Committee on Economic Affairs (CCEA), did not benefit producers much as expected due to the timing of the announcement and only about 6.5 LT were exported under the incentive scheme this season.