Financial Daily from THE HINDU group of publications
Wednesday, Dec 25, 2002
Financial Daily from THE HINDU group of publications Wednesday, Dec 25, 2002 |
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Industry & Economy
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Exports & Imports Agri-Biz & Commodities - Sugar Govt mulls ocean freight subsidy on sugar exports Our Bureau
NEW DELHI, Dec. 24 THE Government is considering providing an additional subsidy to exporters of sugar for re-imbursement of their ocean freight expenses, the Union Minister of Consumer Affairs, Food and Public Distribution, Mr Sharad Yadav, said here today. Addressing the 68th annual general meeting of the Indian Sugar Mills Association (ISMA), Mr Yadav said that the monies for reimbursement of ocean freight subsidy would come from the Sugar Development Fund (SDF) and modalities for the same would be worked out soon. The Government had, in June this year, amended the SDF Act and Rules, allowing mills to claim reimbursement of internal transport and freight charges on export shipments. The reimbursement covered the entire distance from the factory to port, translating into a benefit of $10-12 per tonne for the mills undertaking exports. If the transport subsidy is now extended to cover ocean freight as well — going by the Minister's announcement — it will make an additional difference of around $20 per tonne, making sugar exports further competitive in the international market. According to Mr Yadav, exports wa the `only option' the industry had for paring its huge accumulated stocks and it was in this context that the Government had decided to provide further assistance to exporters, apart from the existing reimbursement of internal transport and freight charges. During the financial year 2001-02, the country exported a total quantity of 14.56 lakh tonnes of sugar. In the current fiscal, an additional 9.38 lakh tonnes were estimated to have been shipped out till December 15, the Minister added.
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