The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi approved the continuation of the incentive scheme for marketing and promotion services of raw sugar production during 2014-15 (October-September) for a quantity of 1.4 million tonnes.
The CCEA has further stated that other conditions will remain the same, as were last year except that in case of mills having alcohol production capacities, the incentive would be available if they offer to supply ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP) up to 25 per cent of their annual production level of alcohol.
The CCEA has approved a uniform rate of export subsidy at Rs 4,000 per tonne for the 2014-15 marketing year. Food minister Ram Vilas Paswan said the decision was necessitated because of estimates that another year of sugar supply glut was on the cards. The ministry had said that the country would be left with an exportable surplus of 1.4 million tonnes after meeting the domestic demand of 24.8 million tonnes.
Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes. Indian Sugar Mills Association (ISMA) estimates sugar production at 26 million tonnes in the current marketing year, against last year’s 24.3 million tonnes with an estimated demand at 24.8 million tonnes for this year. The Food Ministry had first fixed subsidy at Rs 3,300 per tonne for February-March, and later reduced it to Rs 2,277 for April-May. The same was reinstated at Rs 3,300 for June- July before hiking it to Rs 3,371 for August-September period of last marketing year.
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