What Is Sugar Export Subsidy – Burning Issues

Table of Contents

UNDERSTANDING THE ORIGIN

Rural demand is low due to various reasons

ONE OF THE REASON IS THE NON PAYMENT TO SUGARCANE FARMERS

Dues to sugarcane farmers rise to Rs 25,000 crore (More than 3 billion dollars) Millions of Sugarcane farmers in Uttar Pradesh, Maharashtra and Karnataka as well as other states

WHY PAYMENTS ARE DUE?

REASON

Sugar mill owners have been saying that excess sugar production and depressed domestic sugar prices have led to accumulation of arrears Sine sugar mills are not able to earn, they are unable to pay fair and remunerative price (FRP) to farmers

SOLUTION TO THE PROBLEM

Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval for sugar export policy for evacuation of surplus stocks during sugar season 2019-20. The policy provides lump sum export subsidy of Rs. 10,448 per Metric Tonne (MT) to sugar mills for season 2019-20.

INDIAN SUGAR MILLS ASSOCIATION

IMPORTANT FACTS

Brazil alone accounts for almost 52% of the world’s sugar market. While Chinese sugar production has steadily dropped, the country produced ten million metric tons in 2017/2018, domestic demand has dramatically increased leading China to be the world’s largest importer of white sugar.

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