ANNOUNCEMENT 28 Feb 2014In February 2014, the government of India announced a change in financial export support.
NUMBER OF INTERVENTIONS
Bloomberg, Februar 12, 2014. "India Approves Paying $54-a-Ton Subsidy for Raw Sugar Exports" http://www.bloomberg.com/news/2014-02-12/india-approves-paying-54-a-ton-subsidy-for-raw-sugar-exports.html
Reuters, February 12, 2014, 'India grants subsidy to promote raw sugar export over domestic refining': http://www.reuters.com/article/2014/02/12/india-sugar-idUSL3N0LH58H20140212
Gazette GSR 128(E)
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.