ANNOUNCEMENT 18 Sep 2015In September 2015, the government of India announced a change in financial export support.
NUMBER OF INTERVENTIONS
Notification F.No.1(10)/2015-SP-I of the Department of Food and Public Distribution
Withdrawal of requirement
On 18 September 2015, the Indian Department of Food and Public Distribution issued a Notification specifying a Minimum Indicative Export Quotas (MIEQ) for the sugar season 2015-16 starting 1 October 2015.
A total export quota of 4 million tons of all types of sugar (raw/plantation white/refined) has been notified and is divided among 570 sugar factories on the basis of their sugar production in the past 3 years. The quotas, however, are tradeable between the factories.
The motivation for this export requirement is an excess sugar supply in the domestic market. Through its action, the government seeks to stabilize Indian sugar prices and stabilize the income of sugar mills and farmers. This minimum export quota was withdrawn from 8 June 2016.
To the same end, the Indian government had provided a sugar export subsidy of INR 4000 (ca. USD 60) per metric ton. However, the subsidy lapsed on 31 September 2015 without extension (see related state act).