New Delhi: The government is examining cash-starved sugar industry's demand for extending export subsidy on raw sweetener to 2014-15 marketing year, Food Minister Ram Vilas Paswan said on Wednesday.
In February this year, the Centre had announced subsidy for exports of raw sugar up to 40 lakh tonnes during 2013-14 and 2014-15 marketing year in order to help the cash-starved industry to clear cane arrears to farmers.
However, the scheme has not been extended after September 2014. Sugar marketing year runs from October to September.
"The export assistance scheme was for the two sugar seasons. Scheme was to be reviewed after the end of 2013-14 sugar year. The review process is on," Paswan told reporters.
The subsidy was originally fixed at Rs 3,300 per tonne for February-March and the Centre had decided to review the quantum of subsidy every two months.
Incentive was reduced to Rs 2,277 per tonne for April-May and then again raised to Rs 3,300 per tonne for June-July. For August-September, the subsidy was hiked to Rs 3,371 per tonne.
Under the export incentive scheme, India had exported 7 lakh tonnes of raw sugar in 2013-14 marketing year.
Indian Sugar Mills Association (ISMA) has been demanding that the government extend the export subsidy for the current marketing year to stabilise the domestic price and also help clear surplus sugar stock in the country.
Sugar stocks stood at 75 lakh tonnes as on October 1, 2014, the start of the current 2014-15 marketing year.
Sugar production in India, the world's second largest producer after Brazil, has increased by 6.41 lakh tonnes during the first two months of the current marketing year to 17.81 lakh tonnes, according to ISMA data.
The government has pegged overall sugar output at 250.5 lakh tonnes for 2014-15, while the ISMA has estimated the production at 250-255 lakh tonnes.
The production estimates for the current marketing year are higher than 244 lakh tonnes of sugar produced in 2013-14 marketing year.
