The Central Govt. with a view to facilitate export during the sugar season 2020-21 thereby improving the liquidity position of sugar mills enabling them to clear cane price dues of farmers for sugar season 2020-21 on 29th December 2020 notified a scheme for providing assistance to sugar mills for 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 which summed to ₹6000/MT.
In talks with ChiniMandi News, Mr.Subodh Kumar Singh – Joint Secretary, Food and Public Distribution shared that, “The decision comes after taking view on the increased international sugar prices and current market scenario which is viable for sugar exports. The amount of assistance of ₹4000/MT will come in effect from today itself for export contracts happening today onwards.”
In a notification issued on the 20th day of May 2021 the assistance has been reduced to a lump sum amount for the expenses that sum to ₹4000/MT w.e.f. 20th May 2021.
This assistance will be provided only where contract/ agreement between sugar mill (s) and exporter(s) have been signed on or after the date of this notification (20-05-2021).
The Central Government will provide a lump sum assistance for expenses on export of sugar limited to MAEQ of sugar mills for the sugar season 2020- 21 in the following manner:
(a) For internal transport and freight charges including loading, unloading, and fobbing etc. @ Rs. 2400 per MT
(b) For ocean freight against shipment from Indian ports to the ports of destination countries etc. @ Rs. 1600 per MT
Click here to view the notification
