ANNOUNCEMENT 01 Oct 2014In October 2014, the government of India announced a change in financial export support.
NUMBER OF INTERVENTIONS
On 19 February 2015, the Indian Ministry of Consumer Affairs, Food and Public Distribution through Gazette Notification GSR 127(E) extended the incentive on raw sugar exports into the 2014-15 season starting 1st October 2014 until 30 September 2015, and increased the rate of incentive on raw sugar exports from INR 3371 (USD 55) per ton to INR 4,000 (USD 64.30) per ton. The subsidy will be applicable for total exports up to 1.4 million tons.
Further, the notification provides that the above incentive will be available to sugar mills producers that also have ethanol production capacity only if they offer to supply ethanol to domestic oil marketing companies at a quantity equal to their ethanol production capacity or up to 25% of their annual alcohol production, whichever is less.
This incentive received by the sugar factory must be utilized for paying farmers dues within 3 months of receipt.