IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 28 Feb 2014 | Removal date: 30 Mar 2014
Still in force

Export subsidy

On 28 February 2014, the Indian Ministry of Consumer Affairs, Food and Public Distribution notified through Gazette G.S.R. 128(E) the introduction of an export subsidy for raw sugar. The incentive is available for raw sugar factories and provides an incentive of Rs. 3300 (~USD 53) per metric ton of raw sugar exports in the months of February and March 2014. The incentive will be valid till the end of the sugar season 2013-14 i.e. September 2014 and the incentive rates will be modified every two months. The notification further states that the incentive will be available for 4 million tons of sugar exports during for sugar produced and exported in the 2013-14 and 2014-15 season. 
 
The incentive is primarily introduced to provide liquidity to the sugar mills so that they can clear their arrears with the sugarcane farmers. The notification specifies that the sugar mills will be required to use the incentive money first for payment of such arrears and that these payments should be made within 3 months of receipt of the incentive.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170112 Beet sugar
170113 Cane sugar specified in Subheading Note 2 to this Chapter
170114 Other cane sugar
170199 Other

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