New Delhi: The government on Wednesday ratified the methodology used for fixing the export subsidy on raw sugar during April-September period of marketing year 2013-14.
In February this year, the Centre had announced subsidy for exports of raw sugar up to 40 lakh tonnes during marketing years 2013-14 and 2014-15 (October-September) to help the cash-starved industry to clear cane arrears to farmers.
However, the scheme was not extended after September 2014.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given approval to "ratify the methodology adopted to recalculate the incentive rate for bi-monthly periods of April-May 2014, June-July 2014 and August-September, 2014", an official statement said.
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 the same was increased to Rs 3,300 per tonne for June-July. For August-September, the subsidy was further hiked to Rs 3,371 per tonne.
About 7.5 lakh tonnes of raw sugar was exported on the back of this incentives, the statement said.
The exports resulted in significant improvements in liquidity of the industry and clearing up of sugarcane arrears benefitting the cane farmers.
"The incentive rate for bi-monthly periods of April-May 2014, June-July 2014 and August-September 2014 have been finalised respectively at Rs 2,277, Rs 3,300 and Rs 3,371 per tonne. Total financial help is expected to be around Rs 200 crore," the statement added.
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