Question : Export of Sugar

(a) whether the Government had decided to export the surplus sugar as a result of excess production of sugar vis-a-vis its consumption in the country during the current year, if so, the details in this regard along with the quantum of sugar decided to be exported;

(b) whether the Government has approved in providing a lump sum export subsidy to sugar mills for the sugar season 2019-20, if so, the details thereof along with the total estimated expenditure to be incurred for this purpose;

(c) whether the Government has made any arrangement to transfer the subsidy directly into farmer’s account, if so, the time by which the amount will be transferred; and

(d) the other steps taken by the Government to boost sugar exports in the country?

MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)

(a) & (b): The Government of India has notified a Scheme on 12th September, 2019 for evacuation of surplus stock of sugar from the country. Under this scheme, Maximum Admissible Export Quantity (MAEQ) of 60 LMT has been fixed among sugar mills for export during the current sugar season 2019-20.
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The Government has approved a Scheme for export of sugar by providing a lumsum export subsidy at the rate of Rs.10,448/- per MT towards expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar. The total expenditure in this regard would be about Rs.6268 crore.
(c): In order to ensure that the assistance is directly credited into the accounts of farmers, the sugar mill shall open a separate no-lien account in a nationalized bank/cooperative bank and furnish to that bank the list of farmers along with bank accounts details and extent of cane price dues payable to the farmers for the sugar season 2019-20 and cane price arrears of previous sugar seasons, duly certified by the Cane Commissioner or Director of Sugar of the state concerned. The bank shall credit the amount of assistance to the farmers’ accounts on behalf of the mills against cane dues payable and subsequent balance, if any, shall be credited into mill’s account.
(d): To encourage sugar industry to start exploring possibility of export of sugar, the customs duty on export of sugar has been withdrawn w.e.f. 20th March, 2018.

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