India to revoke compulsory sugar export order - government sources | Reuters

NEW DELHI India has decided to revoke an order that requires sugar mills to export excess supplies, two government officials said on Thursday, after two consecutive droughts look set to turn the country into a net importer next season. The government has scrapped the order in view of tightening supplies in the local market, said an official, who spoke on condition of anonymity because the decision has not been formally announced yet.

Reuters May 19, 2016 21:48:55 IST
India to revoke compulsory sugar export order - government sources
| Reuters

India to revoke compulsory sugar export order  government sources
 Reuters

NEW DELHI India has decided to revoke an order that requires sugar mills to export excess supplies, two government officials said on Thursday, after two consecutive droughts look set to turn the country into a net importer next season.

The government has scrapped the order in view of tightening supplies in the local market, said an official, who spoke on condition of anonymity because the decision has not been formally announced yet.

Late last year the government asked mills to export as much as 3.2 million tonnes to deal with what was then a glut that undermined prices and put mills under financial pressure.

Out of the 3.2 million-tonne export target mills had sold around 1.5 million tonnes onto world markets.

To support the scheme and relieve that pressure, New Delhi agreed to pay farmers 45 rupees for every tonne of sugar cane they produced, representing about 2 percent of the costs incurred by mills.

Farmers will no longer get payment after the compulsory export order is revoked, said another official.

Without the production subsidy Indian mills are expected to struggle to export profitably, potentially boosting global sugar prices and allowing rival suppliers like Brazil, Thailand and Pakistan to increase their shipments.

Reuters reported earlier this month that India was considering whether to scrap the compulsory export order.

(Reporting by Mayank Bhardwaj; Writing by Rajendra Jadhav; Editing by Greg Mahlich)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Junior finance minister says higher Q1 tax mop-up shows economy on recovery path
Business

Junior finance minister says higher Q1 tax mop-up shows economy on recovery path

Net direct tax collection in the April-June quarter of the current fiscal is over Rs 2.46 lakh crore, as against more than Rs 1.17 lakh crore during the same period of the previous fiscal

After a month, NASA fixes Hubble and resumes science observations
science

After a month, NASA fixes Hubble and resumes science observations

The telescope also shared an image of galaxies with spiral arms and a pair of interacting galaxies in the southern hemisphere.

Bharat Biotech terminates MoU with Brazilian partners for COVID vaccine following graft allegations
India

Bharat Biotech terminates MoU with Brazilian partners for COVID vaccine following graft allegations

Bharat Biotech signed an MoU with Precisa Medicamentos and Envixia Pharmaceuticals in November last year for the purpose of introducing Covaxin in Brazil